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China Green Finance & Investment Dialogue


An integrated approach to China's green financing pathway

In early 2013 E3G began exploring the financing and investment challenges for implementation of China’s goals for decarbonising its economy. The final report, that was published July 2014, identified the need for an integrated approach between decision-makers focused on the differing agendas of (1) green finance and the green credit guidelines – (2) China’s low carbon transition and climate related investments – and (3) broader economic and financial reform and increasing private sector driven investments.

 

On the 12th April 2015, E3G with the Central University of Finance and Economics (CUFE), convened the first high-level meeting of the Dialogue in Beijing. The meeting was chaired by three co-chairs (Dr Ma Jun, Chief Economist of the People’s Bank of China (PBoC); Mr Jiao Xiaoping, Deputy Director of China CDM Fund; and Mr Li Junfeng, Director General of National Center of Climate Change Strategy Research) representing the Dialogue’s three main policy agendas.

Bringing together Chinese decision-makers from government, finance, industry and think-tanks to consider issues at the interface of green finance – climate related goals – economic and financial reform, the Dialogue was welcomed as an opportunity for ongoing dialogue and joint problem-solving required for financing China’s low emissions pathway to 2030.

“China Green Investment and Finance Dialogue brings together the financial sector, regulatory bodies, new energy companies, consultation companies and research institutes, and sets up a common platform to explore China’s development transition pathways. It needs to address real issues on the ground.” Li Junfeng (Director of the National Centre of Climate Change Strategy Research)

It was agreed that the initial focus of the Dialogue should be for integrating thinking and identifying synergies and practical approaches by:

  • Capturing emerging thinking and new initiatives for accelerating the uptake of instruments and other measures for developing China’s green financial market. The Dialogue will consider issues identified by other relevant fora, notably the PBoC’s Green Finance Committee;   
  • Building understanding of how public private partnerships (PPPs) can work to scale up the investment required for China’s low carbon transition to 2030. This will include identifying and providing recommendations on the policy and regulatory framework and incentives required to mobilise private sector investment in low carbon infrastructure as well as for increasing SME’s access to green finance;
  • Identifying the financing pathway for implementation of China’s intended nationally determined contribution (iNDC) and emissions peaking goal. This will draw on issues related to the above, and also consider transitional issues in moving from a reliance on coal to cleaner and more energy efficient options. Recommendations for China’s next 5 year plan as well as issues that may be important for subsequent periods of economic and financial reform will be identified.

“Unlocking green finance is a key priority now for China and several objectives can be taken forward through the 13th 5 year plan, including through greening of existing financial institutions and policy incentives that increase returns on green capital investments. Issuance of green bonds could also help meet long-term investment requirements.”  Ma Jun (Chief Economist, PBoC)


 

 

“The Dialogue provides a valuable platform for addressing common goals and sharing experience between different policy agendas.” Jiao Xiaoping (Deputy Director of China CDM Fund)

 

 

 

 

 

 

 

 

 

 

You can read about the project here in Chinese on the project website.

 

 



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