The COP27, crystallizes diplomatic tensions

COP27, after the visit of Nancy Pelosi, in Taiwan, China stops the climate negotiations with the United States.

Share:

COP27, after the visit of Nancy Pelosi, in Taiwan, China stops the climate negotiations with the United States. This decision suggests a serious challenge at the United Nations conference in November.

Sino-American tensions

Prior to COP27, this tension resulted from China’s request to be removed from the list of developing countries. Indeed, this request from the US Senate would change China’s position in the negotiations. Thus, relations between the two powers are tense before the international meeting in Egypt.

In the upcoming negotiations, China will seek a new partnership with developing countries. The objective will be to stimulate investment in renewable energy. It will also be a matter of pushing back trade barriers made in the name of environmental protection.

Proposals for a global clean energy partnership are emerging. China was committed to channeling investment and reducing the costs of implementing these energies. Beijing will probably turn to the BRICS, the African Union and Southeast Asia.

China, which is focusing its development on clean energy, plans to use coal for several more years. Coal accounts for 65% of the country’s production and is not expected to decrease until 2030. The cause would result from the difficulties linked to the economic situation such as Covid-19 or the energy crisis.

Carbon tax

In addition, the country is concerned about the decision by developed regions to push developing countries to accelerate decarbonization. The objective is to increase the price of carbon. Thus, Chinese Foreign Minister Wang Yi states:

“In the face of global challenges, all parties should reject unilateralism, geopolitical rivalry and green barriers.”

The border carbon adjustment mechanism (CBAM) is a likely solution. Discussions between the European Union and the WTO are underway. China is the EU’s largest trading partner for products covered by CBAM, such as steel.

Beijing is concerned that this mechanism will have a negative impact on data security. In addition, the country says that a costly carbon tax would negatively affect the cost competitiveness of export products. Furthermore, COP27 is an opportunity for China and the European Union to discuss this mechanism.

In addition to COP27, the question remains about China’s participation in the Climate Club. This meeting, promoted by Olaf Scholtz and adopted by the G7, aims to accelerate international climate action. Thus, one of the objectives of this format is to allow countries to establish partnerships in energy.

BRICS adopt a joint financial framework aimed at supporting emerging economies while criticizing European carbon border tax mechanisms, deemed discriminatory and risky for their strategic trade relations.
The European Commission is launching an alliance with member states and industrial players to secure the supply of critical chemicals, amid growing competition from the United States and China.
Trade between Russia and Saudi Arabia grew by over 60% in 2024 to surpass USD 3.8 billion, according to Russian Minister of Industry and Trade Anton Alikhanov, who outlined new avenues for industrial cooperation.
Meeting in Rio, BRICS nations urge global energy market stability, openly condemning Western sanctions and tariff mechanisms in a tense economic and geopolitical context.
Despite strong ties, Iran's dependence on oil revenues limits its ability to secure substantial strategic support from Russia and China amid current international and regional crises, according to several experts.
Egypt’s Electricity Minister engages in new talks with Envision Group, Windey, LONGi, China Energy, PowerChina, and ToNGWEI to boost local industry and attract investments in renewable energy.
The potential closure of the Strait of Hormuz places Gulf producers under intense pressure, highlighting their diplomatic and logistical limitations as a blockage threatens 20 million daily barrels of hydrocarbons destined for global markets.
Budapest and Bratislava jointly reject the European Commission's proposal to ban Russian energy supplies, highlighting significant economic risks and a direct threat to their energy security, days ahead of a key meeting.
Libya officially contests Greece's allocation of offshore oil permits, exacerbating regional tensions over disputed maritime areas south of Crete, rich in hydrocarbons and contested by several Mediterranean states.
Hungary, supported by Slovakia, strongly expresses opposition to the European Commission's plan to phase out imports of Russian energy resources, citing major economic and energy impacts for Central Europe.
Israeli military strikes on Iran's Natanz nuclear site destroyed critical electrical infrastructure but did not reach strategic underground facilities, according to the International Atomic Energy Agency (IAEA).
The French president travels to Nuuk on 15 June to support Greenlandic sovereignty, review energy projects and respond to recent US pressure, according to the Élysée.
Kazakhstan has selected Rosatom and China National Nuclear Corporation to build two nuclear power plants totaling 2.4 GW, a decision following a favorable referendum and coinciding with Xi Jinping’s upcoming strategic visit.
Israeli strikes against Iranian nuclear sites disrupt US-Iranian talks on the nuclear deal. Tehran now considers canceling the upcoming negotiation round in Oman, heightening regional economic concerns.
Facing alarming breaches of uranium enrichment thresholds by Iran and explicit existential threats, Israel launches targeted military strikes against Iranian nuclear infrastructure, escalating regional tensions dramatically.
The Kremlin has confirmed that Vladimir Putin aims to help resolve the nuclear dispute between the United States and Iran, leveraging strengthened strategic ties with Tehran.
President Lee Jae-myung adopts an energy diplomacy rooted in national interest, amid a complex international landscape of rivalries that could create challenging situations for the country and its energy businesses.
Paris and Warsaw held a bilateral workshop in Warsaw to strengthen coordination on electricity infrastructure investments and supply security under the Nancy Treaty.
Donald Trump firmly rejects any uranium enrichment by Iran, while Russia affirms Tehran’s right to civil nuclear power, intensifying tensions in negotiations over the Iranian nuclear program.
Syria has signed a $7bn agreement with a consortium of companies from Qatar, Turkey and the United States to rebuild its national power sector.