Financing climate justice in the European Union and China: common mechanisms, different perspectives

Abstract

Climate justice is a concept with many different and competing interpretations. It has salience at intra-country, inter-country and intergenerational levels of climate politics. While inter-country climate justice has long been on the agenda of United Nations climate negotiations, the intra-country and intergenerational aspects of climate justice have assumed new prominence in many countries in recent years, as the economic consequences of mitigation became felt and transnational activism highlighted youth concerns. The diverse elements of and approaches to climate justice have this in common: realising them requires massive financial interventions and reforms. This article examines the still emerging frameworks to finance climate justice in two of the jurisdictions most important to the global response to climate change: the European Union and the People’s Republic of China. The EU and China have in common that they are both on the front line of financial innovation to respond to climate change. They are utilising similar tools of systemic financial intervention in order to transition financing to climate-friendly investment, in the first case domestically, but with clear implications for global financial markets. However, the EU and China are utilising climate financing mechanisms in the context of very different prevailing perspectives on climate justice. This article interrogates the relationship between these different perspectives on climate justice and the distribution, scale and pace of climate finance. The article also observes that while the EU incorporated climate justice considerations in its economic responses to the COVID-19 pandemic with a recovery package prioritising climate action, China did not take the opportunity to foster a ‘green recovery’.

The EU and China in the climate regime: exploring different pathways towards climate justice

“…The three remaining papers of the special issue all take a comparative approach and mainly focus on the economic realm. Referring to the central importance of financial interventions to tackle questions of climate (in)justice, Stephen Minas’ contribution, “Financing climate justice in the European Union and China: common mechanisms, different perspectives” (Minas 2022 ), compares the frameworks to finance climate justice in the EU and China. He finds that while both actors have used similar tools for transitioning financing to climate-friendly investments, they do so based on very different perspectives on climate justice.…”

“…China, on the other hand, had long played the card of the developing country that cannot be negated the “right to develop” and to catch up economically (Moellendorf 2015 ) and that does not bear much responsibility for historic emissions (Harvey and Doherty 2018 ). In recent years, however, it has begun to take on more responsibility (Minas 2022 ; Paltsev et al 2012 ; Kopra 2018 ; Teng and Wang 2021 ). Thus, it agreed on a number of environmental protection measures, ramped up the transition towards renewable energy, and with its “Ecological Civilisation” concept put forward its own pathway towards tackling environmental destruction (Yang 2022 ; Minas 2022 ).…”

“…In recent years, however, it has begun to take on more responsibility (Minas 2022 ; Paltsev et al 2012 ; Kopra 2018 ; Teng and Wang 2021 ). Thus, it agreed on a number of environmental protection measures, ramped up the transition towards renewable energy, and with its “Ecological Civilisation” concept put forward its own pathway towards tackling environmental destruction (Yang 2022 ; Minas 2022 ). Nevertheless, China has always made clear that it will not accept too strict, obligatory emission reduction targets or any other patronizing interventions in the foreseeable future, thus underlining its emphasis on a voluntary climate regime that respects state sovereignty and different pathways towards tackling climate change and climate (in)justice (Men 2014 ; Yang 2022 ).…”

Investimentos em infraestrutura sustentável como medida de adaptação e seus efeitos na Justiça Climática brasileira

“…essência, é inseparável da ideia da justiça climática. A conexão entre esses conceitos pode ser observada no próprio artigo 2 do Acordo de Paris, no qual declara-se o objetivo de direcionar os fluxos de finanças para a concretização de um desenvolvimento pautado na redução das emissões de gases de efeito estufa e na resiliência climática(MINAS, 2021). Contribuição da Engenharia de Produção para a Transformação Digital da Indústria Brasileira" Foz do Iguaçu, Paraná, Brasil, 04 a 07 de outubro de 2022.…”