Environment and Natural Resources

The energy transition has made deep-sea mining for critical minerals cost-competitive for the first time, and Chinese companies are champing at the bit to start mining at a commercial scale. The United States and its partners, by contrast, have been caught on the back foot when it comes to China’s stranglehold on the critical mineral supply chain. With the geopolitical rivalry between China and the United States intensifying, many Western observers say the United States can’t afford to lose the scramble for the seabed. 

In an essay for Harvard Kennedy School Magazine, Henry Lee argues the policies China is pursuing to wean itself off reliance on fossil fuels may also benefit its quest for greater energy security.

Institutional reforms are key to China tackling climate change. More are needed to secure a low-carbon future, write Henry Lee and Daniel Schrag.

On March 17, 2022, Henry Lee testified before the U.S.-China Economic and Security Review Commission during the Hearing on China's Energy Plans and Practices. Read his full testimony here.

In recent years, the relationship between China and the United States has been characterized by rising geopolitical tensions, and cooperation and coordination between the two countries has become something of a pipe dream. Yet there is one issue where the interests of both clearly overlap: climate change. A global temperature increase of 3°C will damage the economies and social fabric of both the United States and China—an outcome that both countries want to avoid. 

Renewable hydrogen offers significant advantages for China. It can help Beijing meet its climate and pollution goals—at a time when coal continues to dominate—while avoiding increased reliance on imported fuels. As a readily dispatchable means of storing energy, hydrogen can help to address intermittency and curtailment issues as renewable energy increases its share of China’s energy mix. As a sustainable mobility energy carrier, it can power fuel-cell electric vehicles or be the base for synthetic fuels. Finally, renewable hydrogen can open new avenues for developing clean technology manufactured goods for both internal and export markets.

China announced it would launch a national carbon market in 2017, yet this policy is taking years to come into effect. What will it take for a carbon market to work in command-and-control China? This policy brief explores an understudied challenge—emissions accounting—and identifies potential opportunities that have arisen in the first phase of China’s national carbon market.

China's national carbon emissions trading program is expected to become the world's largest carbon market and is critical for achieving China's domestic mitigation goals. But China's trading program is likely to face significant challenges, due to its large scale and high complexity. To address these challenges, we provide a series of policy recommendations, including capacity building from central to local levels, wise selection of allowance allocation methods to cope with changing economic realities, and deepening market-oriented reforms in energy sectors and SOEs.

The Trump administration budget request for programs to reduce the dangers of nuclear theft and terrorism is too small to implement the ambitious approach that is needed. Congress should increase funding in this critical area; direct the administration to develop and implement a comprehensive plan for improving security for nuclear weapons and materials worldwide; and exert expanded oversight of this effort. This brief highlights the importance of ongoing nuclear security work; describes the evolving budget picture; and outlines recommendations for congressional action.