Special envoys from China and the U.S. have announced a cooperation between the two largest greenhouse gas emitters over the climate crisis, reports Financial Times.
The two countries made a joint declaration and commitment to working together to tackle climate targets, with China seeming to agree to five-year climate targets that it had previously opposed, as well as agreeing to start reducing methane emissions.
“We both see that the challenge of climate change is an existential and severe one,” said Chinese climate envoy Xie Zhenhua. “In the area of climate change, there is more agreement between China and the US than there is disagreement.”
The joining of two countries typically diametrically opposed comes at a time when negotiators are struggling to finalize many issues, including rules for the global carbon market, a standardized way for countries to report emissions, and an agreement on the level of financial contributions by developed countries to developing ones as climate events worsen.
“Now the two largest economies in the world have agreed to work together to raise climate ambition in this decisive decade,” said John Kerry, climate envoy for the U.S.
China Is Investing in the Green Transition
China is currently the world leader in total renewable energy capacity, holding 31% of the world’s capacity. In the midst of the regulatory crackdown in China, this industry has continued to perform.
The KraneShares MSCI China Clean Technology Index ETF (KGRN) capitalizes on investing in clean technology in China’s growing economy.
KGRN tracks the MSCI China IMI Environment 10/40 Index and is based on five clean technology themes: alternative energy, energy efficiency, green building, sustainable water, and pollution prevention.
It allows investors direct exposure to ESG market movers in China by investing in companies such as Chinese electric vehicle manufacturer Li Auto Inc at 8.96%; China Longyuan Power Group Ltd, the largest wind power producer in China, at 5.40%; and LONGi Green Energy Technology Co. at 4.83%.
The ETF has an expense ratio of 0.78% and has $200 million in assets under management.
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