June 07, 2016







TRACK - Part 2

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31. Peacekeeping: The United States and China exchanged views on UN peacekeeping operations at an S&ED breakout session and welcomed the constructive exchange that took place during the first Peacekeeping Technical Experts Meeting held in Beijing in November 2015. The two sides reaffirmed their joint commitment to deepen their dialogue on these issues and to further discuss concrete proposals for cooperation in building the capacity of third country police and troop contributing countries in the next round of the Peacekeeping Technical Experts Meeting to be held before the UN General Assembly in September. The two sides recognized that the maintenance of international peace and security often depends upon the ability of the UN to deploy effective peacekeepers in conflict-affected areas of the world. The two sides condemned the May 31 terrorist attack on UN peacekeepers deployed in Mali, which caused the death of one Chinese peacekeeper and injured others. The United States expressed its deepest sympathy to the family of the victim, and the two sides expressed their support for the swift investigation and prosecution of those responsible. The two sides commended the UN Security Council's support for Women, Peace, and Security (WPS); reaffirmed their support for the UNSC resolutions that provide a framework for implementing and monitoring the WPS Agenda; and decided to discuss WPS issues, including at their S&ED breakout session. The two sides also decided to discuss UN police peacekeeping, and efforts to support police contributing countries.

32. United Nations: The United States and China held the second round of UN and multilateral affairs consultation at an S&ED breakout session. The two sides expressed support for the United Nations playing an important role in international affairs as the most universal multilateral organization, and explored effective ways to maintain international peace and security through multilateralism. The two sides exchanged views on a wide range of areas, including development, disaster risk reduction, and peacekeeping. The two sides reaffirmed that development is the fundamental solution to various global challenges. The two sides decided to enhance coordination regarding the implementation of the 2030 Agenda for Sustainable Development, facilitating the formulation of G-20 action plan on the 2030 Agenda for Sustainable Development and promoting global development cooperation. The two sides decided to strengthen cooperation on disaster management, including through exchanges, research, major natural disaster response exercises, and the implementation of Sendai Framework for Disaster Risk Reduction. The two sides discussed the growing needs of refugees and the strains on the UN's humanitarian system. China noted the U.S.-hosted Refugee Summit and the UN High-Level Plenary on Addressing Large Movements of Refugees and Migrants at the UN General assembly would help address the growing needs of refugees.

33. Humanitarian Assistance and Disaster Response: The United States and China participated in the World Humanitarian Summit in Istanbul in May 2016. The two sides decided to deepen their cooperation and support for the UN International Search and Rescue Advisory Group (INSARAG), and promote the implementation of the Sendai Framework for Disaster Risk Reduction (2015-2030). The two sides decided to increase resource contributions to countries adversely affected by El Nino, based upon the request of host governments, including via the World Food Programme and focusing especially on countries in the Horn of Africa. In the long-term, the two sides intend to share information and explore cooperation on reducing the impact of climate-related disasters.

34. Global Development: Building on the U.S.-China Memorandum of Understanding (MOU) signed during President Xi Jinping's September 2015 state visit to the United States, the United States Agency for International Development (USAID) and the Ministry of Commerce of China (MOFCOM) convened the first annual vice-minister level Development Meeting in Beijing, China on April 28, 2016. The two sides reaffirmed their shared objectives in ending poverty and advancing global development through enhanced collaboration and communication under the principle that cooperation is raised, agreed, and led by recipient countries. China and the United States intend to expand their collaboration with international institutions to tackle key global development challenges . The two sides intend to continue expanding their discussion on development matters in future development-related meetings, such as, the nexus between development assistance cooperation and combating climate change.

35. 2030 Agenda for Sustainable Development: The United States and China reaffirmed the importance of advancing sustainable and inclusive development and implementing the 2030 Agenda for Sustainable Development, including the Sustainable Development Goals and the Addis Ababa Action Agenda, through expanded cooperation to end poverty and hunger, promote inclusive economic growth, and protect the environment. The two sides also reaffirmed their commitment to help developing countries achieve their development goals and priorities. The two sides plan to continue sharing knowledge, best practices, and lessons learned on global development issues and common development challenges, and discuss new opportunities for development cooperation.

36. Responsible Mineral Supply Chain: The United States and China recognized that responsible mineral supply chain practices promote stability and prosperity in the African Great Lakes region and the two sides welcomed each other's efforts in this area. Both sides expect to encourage exchanges and the sharing of best practices between commercial enterprises in the two countries. The U.S. Department of State and relevant U.S. agencies, and China's Ministry of Commerce and the General Administration of Quality Supervision, Inspection and Quarantine intend to collaborate on implementation of due diligence guidance, relevant standards, and initiatives, consistent with UNSCR 1952 (2010).

37. Wildlife Trafficking: The United States and China reaffirmed their intention to implement the wildlife trafficking commitments under the September 2015 U.S.-China Presidential outcome. The two sides underscored the importance and urgency of combating wildlife trafficking and decided to enhance cooperation, including through technological innovation. The United States implemented its commitments on the import, export and domestic commercial trade of ivory in June 2016, and China enacted bans on import of ivory and its products in March 2016, and decided to publish a timetable by the end of 2016 to halt its domestic commercial trade of ivory. To reduce the impact of wildlife trafficking on all species, including on marine species such as totoaba and sea turtles, the two sides decided to: prioritize cooperation in mutually-decided upon exchange programs and enhance law enforcement cooperation, including through international, multi-country operations to effectively detect, deter, and dismantle wildlife trafficking networks; intensify domestic law enforcement efforts; treat wildlife trafficking as a serious crime; strive to eliminate market driving forces for poaching and illegal trade of wildlife; strengthen bilateral cooperation and communication in developing wildlife identification techniques that can be successfully used in judicial proceedings ; and encourage relevant actors to take voluntary actions to combat online trade of illegal wildlife products. The two sides decided to further cooperate in joint training, information sharing and public education on combating wildlife trafficking, and to work with government, international governmental organizations, civil society, the private sector, and local communities, in a comprehensive effort to combat wildlife trafficking . The two sides decided to strengthen working level communication and cooperation to implement the above mentioned joint actions, and progress should be included in subsequent S&ED outcomes.

38. G-20: The United States supports China's presidency to host a successful G-20 Hangzhou Summit in 2016 and looks forward to working closely with China to promote strong, sustainable, and balanced growth of the global economy. In supporting the G-20 as the premier forum for international economic cooperation, both sides are committed to working with other G-20 members to (i) strengthen macroeconomic policy cooperation; (ii) use all policy tools to foster confidence and strengthen growth, use fiscal policy flexibly to strengthen growth, use monetary policy to continue to support economic activity and ensure price stability, consistent with central banks' mandates, and use structural reform to boost potential growth in the medium term; (iii) explore opportunities arising from innovation; (iv) improve global economic, financial and energy governance ; (v) address climate change and bolster c lean energy; (vi) contribute to inclusive and sustainable global development through the implementation of the 2030 Agenda for Sustainable Development, both domestically and internationally, and the timely implementation of the Addis Ababa Action Agenda. Both sides are committed to working with other G- 20 members to make continued progress on these and other issues in the G-20 agenda and deliver positive outcomes for the Hangzhou Summit across a number of areas, including phasing out inefficient fossil fuel subsidies by a date certain; continuing discussions and cooperation on climate and energy efficiency, such as improving emissions performance of heavy-duty vehicles and steps to reduce methane emissions; conducting cooperation on epidemic prevention, detection, and response, based on the World Health Organization Joint External Evaluation tool; and combating antimicrobial resistance. Both sides encourage all G-20 members to fully implement commitments made at previous G-20 Summits.

39. Consultation on International Economic Affairs: The U.S. Department of State and the Ministry of Foreign Affairs of China held a second round of consultations on international economic affairs, discussing a range of issues including the world economy, G-20, APEC, and the 2030 Agenda for Sustainable Development. The two sides decided to hold the third round of consultations in China in 2017 to further communication and coordination.

III. Cooperation on Climate Change and Energy

40. Commitment to Working Toward Full Implementation of the Paris Agreement: Building on the March 2016 Joint Presidential Statement on Climate Change, the United States and China reiterated their commitment to work together and with others to promote the effective implementation of the Paris Agreement, including through relevant work programs. The two sides decided to maintain and strengthen regular high-level dialogue on issues in the international climate negotiations through the Enhanced Policy Dialogue. The United States and China continue to encourage other Parties to the United Nations Framework Convention on Climate Change to take their respective domestic steps in order to join the Agreement, with a view to bringing the Paris Agreement into force as early as possible.

41. Climate Change Working Group: The United States and China celebrated the progress achieved through the first three years of the Climate Change Working Group (CCWG), a durable, multi-year framework that facilitates constructive dialogue and cooperation to address climate change. The S&ED co-chairs released the annual CCWG report documenting progress to date and future goals of the various elements of the CCWG, including the ongoing work of the nine CCWG action initiatives, regular meetings of the Enhanced and Domestic Policy Dialogues, and collaboration and dialogue on HFCs. The two sides welcomed the expansion of the CCWG through creation of the new Electric Power Systems Initiative, comprised of ongoing cooperation on Smart Grids and new cooperation on Power Consumption, Demand, and Competition. Individual CCWG initiatives and dialogues meet throughout the year, and the next CCWG annual intersessional meeting is intended to be held in China in early 2017.

42. Achieving a Successful Outcome on HFCs under the Montreal Protocol: The United States and China committed to work bilaterally and with other Parties to achieve a successful outcome of a comprehensive and ambitious HFC amendment under the Montreal Protocol this year pursuant to the Dubai Pathway. This commitment builds on the two sides' close cooperation during a bilateral negotiator meeting, the 2015 Meeting of the Parties to the Montreal Protocol, and the April 2016 Open-Ended Working Group in Geneva. The two sides also emphasized the importance of domestic action to reduce use and emissions of HFCs. China plans to continue implementing HFC-23 byproduct controls from HCFC-22 production facilities before the end of 2020 and initiate the development of policies to reduce intentional uses of HFCs. The United States completed a regulation in 2015 that prohibits certain high-GWP HFCs in specific applications, which is estimated to avoid 54-64 MMTCO2eq of HFC emissions in 2025; expanded the list of approved climate-friendly alternatives; and in April 2016, proposed further restrictions on the use of certain HFCs.

43. Enhancing the Collaboration in ICAO: The United States and China support the adoption this October of an ICAO Assembly Resolution that, as part of a basket of measures to address CO2 emissions from international aviation, reflects a global market-based measure (GMBM). Consistent with their past contributions to the resolution of global climate-related issues, the two countries have an important role to play in helping to forge convergence on the outstanding issues. The two sides decided to work together and with other ICAO Member States to reach a successful outcome this year.

44. CCWG Heavy-Duty and Other Vehicles: The United States and China remain closely engaged as they continue to make significant, respective domestic policy and programmatic progress within the three components of the Heavy-Duty and Other Vehicles Initiative. On tailpipe emissions and fuel quality standards, China accelerated the release of its draft China 6/VI emission standards for light- and heavy-duty vehicles to mid-2016, and intends to implement these standards nationwide in 2020. China also plans to enhance its compliance programs for heavy-duty vehicles. On fuel consumption and greenhouse gas emission standards, the two sides decided to hold an experience-sharing workshop that would bring together policy makers, industry, and other stakeholders in fall 2016 to discuss heavy-duty vehicle emissions and fuel consumption standards. On green freight, China with the United States held the annual China Green Freight Initiative Conference in September 2015, with thematic activities focused on green shippers. China plans to host the next annual conference, which is to include a green freight enterprise training, a shipper-carrier cooperation workshop, and a green freight technology workshop, in late 2016. On the Race to Zero Emission (R2ZE) challenge to encourage local deployment of zero emission buses, the two sides formally launched R2ZE at the 2016 China- U.S. Transportation Forum and launched the official R2ZE website ( https://www.transportation.gov/R2ZE ) to promote the program, profile the race participants, and host zero emission bus news. The two sides jointly organized a zero emission bus breakout session at the June 2016 China-U.S. Climate-Smart / Low-Carbon Cities Summit and decided to hold the next R2ZE conference in conjunction with 2017 China-U.S. Transportation Forum. Finally, the two sides decided to work together and with other countries to secure strong outcomes to improve fuel quality and the energy efficiency and emissions performance of heavy-duty vehicles through the G-20.

45. CCWG Smart Grids: Continuing their multi-year collaboration to demonstrate and evaluate smart grid technologies across four pilot projects, the two sides completed more than 40 expert-days of technical assistance exchanges during the China Smart Grid Technologies Reverse Trade Mission in November 2015. The two sides also held a workshop in Beijing in October 2015 where participants reported on demonstration project outcomes including: (1) energy savings from distribution voltage control on different electric circuits in Irvine, CA; and (2) advanced functionalities developed in end-user energy management systems, multi-state energy coordination and control, and the big data monitoring platform in Tianjin Eco-City, China. In addition, the Benefits Evaluation subgroup published the first edition of the U.S.-China white paper on smart grid benefits analysis and evaluation in October 2015. The results show promising benefit- to-cost ratios ranging from 3 to 7 for key smart grid technologies. The two sides decided to publish the final white paper analyzing the benefits of smart grids by December 2016. Moving forward, the United States and China decided to enhance their collaboration on Smart Grid and other technologies and to rename the CCWG Smart Grids Initiative as the Electric Power Systems Initiative. The next phase of this CCWG collaboration focuses on testing smart grid equipment, devices, and systems to comply with national/industry/enterprise standards at the respective national test facilities in the two countries.

46. Clean, Efficient, and Secure Electricity Production and Transmission: The United States and China, through the U.S. Federal Regulatory Commission (FERC) and China's National Development and Reform Commission (NDRC) and National Energy Administration (NEA), decided, when possible, to hold seminars on smart grids; conduct pilot projects on the use of smart-grid technology; carry out exchanges and training of personnel; and review smart grid goods and services in both countries. The two sides encouraged local governments to play a more active role in project implementation, hosting international exchanges and cooperating on smart grid developments. The United States and China also decided to further strengthen their cooperation regarding China's movement toward market-based pricing mechanisms; strive to arrange a yearly two-way visit program; hold digital video conferences on specific topics regularly such as transmission and distribution prices; organize training courses in China on price monitoring and management of power transmission and distribution; and conduct further exchanges on the policies, experience, and reform plans related to power price management.

47. CCWG Carbon Capture Use and Storage (CCUS): The United States and China continued making progress and sharing experience among the six pairs of counter-facing CCWG CCUS demonstration projects. Supported by the U.S. Department of Energy (DOE) and the National Development and Reform Commission of China (NDRC), ongoing cooperative activities include technical exchange meetings, site visits, and researcher exchanges. Top achievements of the projects to date include an announcement by the Yanchang Petroleum project - following its recognition in the September 2015 U.S.-China Joint Presidential Statement on Climate Change - of a 1 MM tonnes CO 2 per year Enhanced Oil Recovery/storage program, and ongoing development of a detailed engineering design for the Guangdong Offshore CO 2 project. The two sides held a CCUS Workshop in Urumqi, Xinjiang in November 2015, and held the third CCWG CCUS Workshop in Xi'an, China in June 2016.

48. CCWG Energy Efficiency in Buildings and Industry: The United States and China remain committed to advancing the Energy Performance Contracting (EPC) initiative to foster deep retrofits for energy savings. At the 2015 Energy Efficiency Forum in Washington D.C. in October, the two sides recognized three pilot projects in Beijing, Tianjin and Shenzhen. Each pilot project includes a U.S. and Chinese partner. Projects are expected to achieve between 25-51 percent energy savings and represents millions of dollars of trade and investment. At the 2016 Energy Efficiency Forum in China, the two sides plan to evaluate lessons learned through the pilot process thus far, to continue collaboration on technical and policy issues, and to recognize additional pilot projects. The United States and China, along with other International Partnership for Energy Efficiency Cooperation partners, developed and released their own "TOP TENs" lists of best energy efficiency practices and best available technologies. The United States and China are collaborating on ways to promote Chinese and American businesses that represent relevant Top Ten Technologies from their respective national lists.

49. CCWG Collecting and Managing Greenhouse Gas (GHG) Data: The United States and China continued working together to implement successful capacity building activities in China on GHG reporting methodologies, data verification, and electronic registry development. In further support of this initiative, the National Development and Reform Commission of China and the U.S. Environmental Protection Agency adopted a new joint implementation plan, under which they held a successful workshop on methane emissions from petroleum and natural gas in fall 2015; launched a petroleum and natural gas sector GHG measurement, reporting, and verification (MRV) pilot in March 2016; and held two additional capacity building events in April 2016 - a design session on reporting software development and a workshop on power sector GHG MRV. The two sides plan additional activities for 2016, including another electronic reporting software development session and a methane-focused capacity building workshop in July.

50. CCWG Climate Change and Forests: In order to reduce emissions and enhance the positive greenhouse gas sequestration effects of forests, the United States and China increased their cooperation on issues related to climate change and forests. The two sides held a policy dialogue on forestry-related agenda items under UNFCCC climate change negotiations that helped facilitate a positive outcome at COP21 in Paris in December 2015. The two sides also held a successful workshop in Beijing in September 2015 on technical cooperation in measuring, monitoring and reporting of forestry- related greenhouse gases, which brought together technical specialists and policy makers from both governments, as well as representatives of civil society and academia. Following up on these initial discussions, experts from the two sides held a May 2016 workshop in Washington to focus on institutional and technical issues related to greenhouse gas inventories, forest inventories, and monitoring. In October 2015, the United States and China each selected two pilot sites intended to be the focus of in-depth consideration by policy-makers and practitioners on the synergies among policies and practices for forest mitigation and adaptation to climate change, beginning with a workshop in China in the autumn of 2016. The two sides held a workshop on forests, climate, finance, and investment in Shanghai in April 2016 with representatives of the two governments, private sector, and civil society. The two sides continue to explore engagement on commodities, forests, and greenhouse gas emissions.

51. CCWG Study on Boiler Efficiency and Fuel Switching : The National Development and Reform Commission (NDRC) and the Department of State released their policy implementation roadmap in October 2015 and continued to identify and deploy potential industrial boiler energy efficiency solutions in the two selected pilot cities, Ningbo and Xi'an. The two sides led U.S. boiler technology providers and financing partners on a study tour in January 2016 to the pilot cities for meetings with government officials interested in retrofitting or replacing small-scale boilers. NDRC has proposed demonstration pilots in which multiple U.S. technologies - pollution reduction, efficiency improvement, advanced combustion/burning - could be integrated for adoption, and NDRC is developing details on those pilots for discussion at the CCWG intersessional in early 2017. To strengthen pilot city implementation plans, the two sides plan to identify specific retrofit opportunities, develop business models for deploying boiler efficiency and community scale solutions, share experiences on monitoring and managing boiler operations, and explore a U.S study tour for Chinese stakeholders to the United States.

52. Industry Boiler Energy Efficiency: The U.S. Department of Energy and China's Ministry of Industry and Information Technology supported the exchanges of industrial boiler sectoral organizations, technology research and development (R&D) centers, and manufacturing enterprises of the two countries. The two sides encouraged U.S. enterprises and research institutions to set up R&D centers jointly with the Chinese side, carry out R&D, promote the application of industrial boiler energy saving and environmental protection technologies, and co-organize Chinese industrial boiler users to conduct energy saving and environmental protection training in the United States.

53. CCWG Climate-Smart / Low-Carbon Cities: The United States and China welcomed expanded climate collaboration at the city, state, and provincial level. The first U.S.-China Climate-Smart / Low-Carbon Cities summit was held in Los Angeles, United States in September 2015. At the summit, 29 cities, counties, states, and provinces of the two countries signed the "U.S.-China Climate Leaders Declaration," which included the launch of a new initiative by provinces and cities in China for peaking pioneers, and medium- and long-term greenhouse gas emission reduction targets of states, counties, and cities in the United States. Beijing hosted the second session of the China-U.S. Climate-Smart / Low-Carbon Cities Summit in June 2016, with participation by 17 U.S. cities, counties, and states and 49 Chinese cities and provinces. All 66 participating provinces, cities, states, and counties from both countries endorsed the U.S.-China Climate Leaders Declaration, which included an expansion of China's initiative for peaking pioneers and additional targets and actions of U.S. states, counties, and cities. The summit was attended by over 1000 people across 17 breakout sessions focusing on low-carbon, climate- resilient development topics. Across the two summits, dozens of memorandums of understandings, arrangements, and other cooperative agreements between cities, states, private sector actors, research institutes, and civil society were signed. The next session of the U.S.-China Climate-Smart / Low- Carbon Cities Summit is planned to be held in 2017 in Boston, the United States.

54. CCWG Power Consumption, Demand, and Competition: To help address the challenges that intermittent wind and solar energy present to electricity grids and local consumption, the United States and China launched a new cooperation on Power Consumption, Demand and Competition under the Electric Power Systems Initiative of the Climate Change Working Group and held the inaugural meeting at the 2016 S&ED. The two sides exchanged best practices on institutional innovations and policy actions for promoting power systems that support low-carbon, climate-resilient, and sustainable development. The two sides decided to jointly develop by fall 2016 an implementation plan for their ongoing work; conduct a study tour in fall 2016 of select pilots in China, including the projects integrating wind and solar energy for local consumption; and hold additional meetings and digital video conferences before the 2017 S&ED.