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Many people may be aware that the talks on environment issues are now centered around developed countries, especially the U.S. and the developing countries, especially China, Brazil and India. The U.S. is watching with a lot of concern how these developing countries will be reacting to the environmental issues. On its part, the U.S. is not prepared to do what it should do to reduce emissions. But, you should remember that you can not expect the developing nations to respond the same way as the developed countries, as the U.S. These developed countries have already contributed heavily for the environment problems due to heavy industrialization in the last century.

According to the chief economist of the International Energy Agency (IEA), Fatih Birol, China is topping the list of energy consumers and they are even much ahead of the U.S. in this. This amply proves that industrialization is taking place at a fast pace in China. Of course, the severe recession in the U.S. has also contributed to its relegation to the second place. Further, more and more automobiles are being used in China. If you compare the energy efficiency of the U.S. and China, the U.S. is adopting a more superior technology for efficient management of its energy. But, even with all these factors, China is emerging as the most dominant industrialized nation in the world and it may be a major force to reckon with in determining the environmental future of the world.

Economies are inseparably linked to energy. When the question of oil and other fossil fuels arises, these fuels may not last long. So, what China does to manage its energy needs will play a vital role and will have major implications on the environment. China’s use of fuels and its decision to use various sources of fuel will also play a great role in determining the cost of these fuels. Chances of China and the U.S. getting into a major tussle on the emissions issue appear bright. Sino-American relations may also get strained over this issue.

China is already planning to meet its increasing demand of fuels. If you study the current trend, the Chinese energy needs may grow by 133 per cent during the period between 2007 and 2035. This jump may be equal to the energy consumption of the whole of Europe and the Middle East during 2007. China is making plans to mobilize such a huge requirement of oil, natural gas and other fuels. It is true that this is a challenging task. But, while facing and succeeding in this challenge, China may get into conflicts with other major countries like the U.S.

Two things will be the major determinants in this situation. What types of fuels or energy sources China will choose and how much it is prepared to spend on these energy resources will determine the cost of these energy sources and equipments. If China plans to spend on nuclear energy, it will have a bearing on the global prices of the equipments related to this sector. If its focus continues to remain on oil refineries and imported oil, coal and natural gas, that will also impact these sectors. In this context, the U.S. should closely watch the energy cooperation deals that are being discussed between Russia and China also.

The U.S. and other developed countries should handle the situation diplomatically and wisely because currently, the U.S. economy is dependent upon China because China is a major exporter to the U.S. and they are also investing heavily on the U.S. Government papers. If China decides to alter the equations, the U.S. economy will plunge into a deeper crisis.

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