By Georgina McCartney

HOUSTON (Reuters) - Former U.S. Secretary of State John Kerry on Wednesday urged a new look at global trade rules, calling the existing mediator of trade disputes, the World Trade Organization, "neutered."

Kerry, who stepped down as President Joe Biden's climate envoy earlier this year, also urged cooperation with China on climate in wide ranging comments on trade, tariffs and the energy transition from fossil fuels at the Gastech energy conference in Houston.

“We need an understanding among nations, which China and the U.S. could help lead, about fair processes within the trading structure of the world," said Kerry.

The Geneva-based WTO "has become somewhat neutered, I think it is fair to say," he added.

The former Biden campaign worker took issue with the rising use of tariffs on Chinese imports that Biden and former President Donald Trump have relied on to rebuild U.S. industry and encourage clean energy businesses such as solar panels, batteries and electric cars.

“I’m not big on tariffs at all. I think historically tariffs have proven to be very problematic for the marketplace and countries," Kerry said. “I'm more believing in creating incentives for the things you want to do."

Nations need to find a way to cooperate with China on climate even as trade disputes grow, he said.

“I advocate working with China on climate because China is 30% of all emissions on the planet and is now the biggest producer of some of these (energy transition) technologies."

U.S. lawmakers and regulators need to address permitting for clean energy projects, which have been stalled by lengthy review periods and repeated challenges.

“We have some blockages – political and regulatory - and one of them is the permitting, you cannot take 10 years to permit this stuff, we don’t have that kind of time,” he said. “Nobody else is going to sit around and wait for us to get our act together.”

(Reporting by Georgina McCartney; Editing by Marguerita Choy)