Fiddling at the margins

Balance of Power From FOLLOW US SUBSCRIBE   While protesters demand immediate cuts to fossil fuel emissions and a radical overhaul of the world's energy supplies, annual United Nations climate-change talks are focusing on an arcane corner of the global carbon market. Energy and environment ministers at the COP25 meeting in Madrid today are discussing market mechanisms that would prod nations and governments to rein in carbon dioxide emissions. They work by issuing credits for projects that reduce pollution or setting limits for polluters, who must pay if they emit more. The U.S. fought to include markets in the talks and will help design the system, even though President Donald Trump wants to quit the Paris climate-change accord. Still, it's not the sort of agenda likely to quell the passions of protesters. The European Union, meanwhile, is gearing up for the world's most ambitious policy against climate change that will require radically overhauling the economy. At a Brussels summit next week, leaders will commit to cutting net greenhouse-gas emissions to zero by 2050. Scientists say the need for action is increasingly urgent. Global temperatures are on track to rise 3 to 5 degrees Celsius by the end of the century, according to the World Meteorological Organization. That would mark the quickest shift in the climate since the last ice age ended. — Reed Landberg Activists protest in Trafalgar Square during demonstrations by the Extinction Rebellion group. "If our common goal is to be a climate-neutral continent in 2050, we have to act now," Ursula von der Leyen, president of the European Commission, said yesterday. Photographer: Niklas Hallen/AFP Global Headlines Just in: Trump suggested this morning it might be more advantageous to wait until after the 2020 election for a China-U.S. trade deal. Earlier, Chinese state media said the government will soon publish a list of "unreliable entities" that could lead to sanctions against U.S. companies. That shows how disputes over human rights in Hong Kong and China's predominately Muslim region of Xinjiang are threatening trade talks. Talking Turkey | Trump says he's willing to sit down at the NATO summit in London this week with Turkish President Recep Tayyip Erdogan, even though their meeting last month on Syria touched off outrage in Washington. Trump isn't due to have a formal sit-down with Erdogan, whose cultivation of ties to Russia and military offensive against Syrian Kurds has concerned alliance members. "I like Turkey," he told reporters this morning, adding that Erdogan "is a good NATO member, or will be." Trump is scheduled to hold meetings today with the leaders of France and Canada, before a Buckingham Palace reception tonight. Erdogan meets today with the leaders of France, the U.K. and Germany — where they will discuss the cost of Turkey housing Syrian refugees. Bet backfires | Trump's plan to reinstate tariffs on steel and aluminum from Brazil is just the latest snub he's given Jair Bolsonaro. As Samy Adghirni and David Wainer explain, the Brazilian president's inability to get a clear diplomatic win from his effusive support of Trump opens him up to criticism at home for joining forces with an unreliable partner. Impeachment report | Republican lawmakers on the House Intelligence Committee said the Democratic-led investigation of Trump failed to establish any impeachable offenses. Instead, their just-released report paints a picture of "unelected bureaucrats" disagreeing with the president's style, world view and foreign policy decisions. Democrats intend to release their findings before the Judiciary Committee's first public hearing tomorrow. Arms race | On the lookout for buyers of American-made weapons, the U.S. president has found a customer in Thailand. But after years of chilled relations the Southeast Asian nation has drawn closer to another major arms exporter: China. The reset in Thai-U.S. ties means Bangkok finds itself at the center of a geostrategic tug-of-war between the two superpowers. What to Watch Hong Kong Chief Executive Carrie Lam today pledged more relief measures for sectors badly affected by almost six months of protests after data showing the unrest had driven a record decline in retail sales. Malaysia's former leader Najib Razak today began testimony to defend himself against allegations involving $10 million in bribes in a case involving a former unit of troubled state fund 1MDB. Tell us how we're doing or what we're missing at balancepower@bloomberg.net. And finally...Ho ho ho? North Korea says the "Christmas gift" it will give to the U.S. depends on how Trump responds to leader Kim Jong Un's demands to ease the sanctions choking his economy. Kim has threatened to take "a new path" that could end his moratorium on testing nuclear weapons and missiles if Trump doesn't offer a better deal by the end of the year. Kim has reminded the region of his military might with shorter-range ballistic missile tests, the most recent coming on the U.S. Thanksgiving holiday last week. Any major actions from Kim may be announced on Jan. 1, when North Korean leaders typically deliver a New Year's address. Photographer: Lee Jin-man/AP   You received this message because you are subscribed to the Bloomberg Politics newsletter Balance of Power. You can tell your friends to sign up here.   Unsubscribe | Bloomberg.com | Contact Us Bloomberg L.P. 731 Lexington, New York, NY, 10022