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The United States and China cooperate through several bilateral and multilateral efforts on issues of energy security and environmentally sustainable economic growth. These efforts include:
- The U.S.-China Strategic Economic Dialogue (SED): The SED, launched in September 2006, addresses broad economic issues of mutual concern, including the promotion of open trade and investment, strategies for managing macroeconomic risks, and enhanced cooperation in energy and environment. Some of the most productive cooperative initiatives under the SED are related to environmental sustainability, climate change, and energy security, including:
U.S.-China 10-Year Energy and Environment Cooperation Framework: The United States and China agreed upon this ambitious framework for enhanced cooperation at the fourth meeting of the SED in June 2008. The Ten Year Framework initially established five goals: clean air; clean water; clean and efficient transportation; clean, efficient, and secure electricity production and transmission; and conservation of forest and wetland ecosystems. At the most recent SED meeting in December 2008, a sixth goal focusing on energy efficiency cooperation was added. The U.S. Department of Energy (DOE) is responsible for the goals on transportation, electricity and energy efficiency.
EcoPartnerships: Under the Ten Year Framework, the United States and China established several voluntary, cooperative agreements between U.S. and Chinese entities. These arrangements involve government-to-government partnerships at the local, state or provincial level, as well as partnerships among businesses, universities, and non-profit organizations in both countries.
- The U.S.-China Oil and Gas Industry Forum (OGIF): Launched in 1998, this bilateral forum provides opportunities for U.S. and Chinese government and industry leaders to conduct open discussions about their respective ventures in the oil and gas sector. The Departments of Energy and Commerce co-host the forum on the U.S. side and the National Development and Reform Commission (NDRC) is the lead agency for China. Additionally, a variety of industry representatives play an active role in formulating meeting agendas and delivering timely and informative presentations on private sector opportunities and issues.
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- The U.S.-China Energy Policy Dialogue (EPD): The Department of Energy and China’s NDRC established the EPD in May 2004 to facilitate policy-level exchanges of views on energy security, mutual economic issues, and energy technology options. The EPD provides a valuable forum for sharing best practices in energy efficiency, resource conservation, market and regulatory policies, oil and gas, nuclear power generation, and renewable energy technology development and deployment.
- U.S.-China Protocol for Cooperation in the Fields of Energy Efficiency and Renewable Energy Technology Development and Utilization: Under this protocol, the Department of Energy and China’s Ministry of Science and Technology (MOST) cooperate in the important areas of energy efficiency and renewable energy. In September 2007 DOE and MOST signed a five-year annex on vehicle efficiency that provides for bilateral exchanges of technical information and demonstrations of next generation vehicle technologies, including advanced batteries, hybrid-electric drive trains, and fuel cell technology.
- The U.S.-China Peaceful Uses of Nuclear Technology (PUNT) Agreement: In 1998, the Department of Energy and China’s State Development and Planning Commission, the predecessor to NDRC, signed the Agreement on Peaceful Uses of Nuclear Technology (PUNT), which reaffirmed the 1985 Peaceful Uses of Nuclear Energy (PUNE) Agreement. This cooperation covers nuclear technology and export controls, nuclear emergency management and safety, and high level waste management. Among other outcomes, this effort helped produce a bilateral Memorandum of Understanding signed in December 2006 for the construction of four civilian nuclear power plants in China.
The United States and China also engage in joint activities in several multilateral fora:
- Asia-Pacific Economic Cooperation (APEC): APEC is a forum that facilitates economic growth, cooperation, trade and investment in the Asia-Pacific region. APEC operates on the basis of non-binding commitments, open dialogue and equal respect for the views of all participants. An integral component of this process is the APEC Energy Working Group (EWG), a cooperative effort in which the United States, China, and other energy stakeholders work together to strengthen energy security in the region.
- Asia-Pacific Partnership on Clean Development and Climate (APP): The Asia-Pacific Partnership on Clean Development and Climate is comprised of the United States, China, Australia, Canada, India, Japan, and the Republic of Korea. The APP works with private sector partners to address national air pollution reduction, energy security and climate change concerns. Together the partners have established eight public-private sector task forces covering the areas of aluminum; steel; cement; coal mining; buildings and appliances; power generation and transmission; cleaner use of fossil energy; and renewable energy and distributed generation.
- Joint Oil Data Initiative (JODI): Sponsored by the International Energy Forum (IEF), JODI is a collaborative research effort by more than 90 countries to create a more transparent global oil market by providing timely, comprehensive oil data. The nations report monthly to the International Energy Forum Secretariat (IEFS) through the six international organizations (APEC, Eurostat, IEA, OPEC, OLADE, and UNSD) that joined to create JODI in 2001. As major stakeholders, both the United States and China are vital participants in this on-going initiative.
Other multilateral energy projects include:
- Carbon Sequestration Leadership Forum (CSLF): CSLF seeks to develop cost-effective technologies for the separation and capture of carbon dioxide for its transport and long-term storage. The purpose of the CSLF is to make these technologies available internationally, and to identify and address wider issues relating to carbon capture and storage (CCS). The forum, which now includes 21 countries as well as the European Commission, has approved 17 capture and storage projects as well as a Technology Roadmap to provide future directions for international cooperation.
- International Partnership for a Hydrogen Economy (IPHE): Established in 2003, the IPHE comprises 17 member countries and the European Union in a partnership to foster international cooperation on research, development and demonstration programs that advance the transition to a global hydrogen economy. The IPHE organizes and coordinates national strategies for hydrogen and fuel cell research and development.
- International Thermonuclear Experimental Reactor (ITER): ITER is an international research and development project that aims to demonstrate the scientific and technical feasibility of fusion power. The project’s partners are the United States, China, Japan, India, Russia, the Republic of Korea, and the European Union (represented by EURATOM). The experimental fusion reactor will be constructed at Cadarache, France and is expected to be completed in 2015. DOE laboratories will subcontract with industry to build the components of ITER for which the United States is responsible.
For more information, see:
Fact Sheet: U.S. and China Actions Matter for Global Energy Demand, for Global Environmental Quality, and for the Challenge of Global Climate Change
Testimony by Katharine Fredriksen, Acting Assistant Secretary of Energy for Policy and International Affairs, before the U.S.-China Economic and Security Review Commission, August 13, 2008
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