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Ma Jun: World’s Largest Green Bond Market Anticipates More PE and VC Funds

Apr 01-2024   



Annual funding to the tune of USD4-6 trillion is needed for global undertakings to address climate change, and most of it has to issue from social capital, said Ma Jun, President of Institute of Finance and Sustainability (IFS) and Adjunct Professor of the NSD, in a keynote speech at a forum on digital economy recently held in Boao, Hainan.

 

He said that within a span of merely eight years, China has erected the world’s largest green bond market, which has been providing financing for the so-called ‘Three New Types’: photovoltaic cells, wind power, and electric cars. The capital mostly emanates from the country’s green finance system, which comprises banks, bond market, stock market, and funds.

 

Besides playing an instrumental role in China’s green finance, Ma Jun’s strenuous efforts resulted in the establishment of G20 Green Finance Study Team, which has been upgraded to be G20 Green Finance Working Group. He has been Co-Chairman of the Group since 2016, of which the accomplishments include forming a series of new global consensus, heading the drafting of common standards with Europe, and opening up cross-border capital flows between the two largest markets in the world. In addition, G20 has extended explicit support to International Sustainability Standards Board (ISSB) standards, which are highly important disclosure standards for green finance that unify the definitions of indices and specify indices for disclosure.

 

The next phase of green finance will be the making of a financial framework to facilitate global transformation, said Ma Jun. This is because industries with high carbon emissions account for 90% of GDP and require an enormous amount of financing to go green. Consequently, he believed three major challenges are to be tackled. The first one is to identify projects in high carbon-emitting industries that are truly capable of transforming into green ones; they should be allocated more resources so that the overall economic development can be achieved. The second - and an urgent one - is to get ISSB standards adopted in China. Lastly, as most green finance projects still concentrate on traditional technologies and don’t cover a great deal of green technologies, Ma Jun called for extensive mobilization of PE and VC funds to enter the domain to back up banks and bond market.

Ma Jun: World’s Largest Green Bond Market Anticipates More PE and VC Funds

Apr 01-2024   



Annual funding to the tune of USD4-6 trillion is needed for global undertakings to address climate change, and most of it has to issue from social capital, said Ma Jun, President of Institute of Finance and Sustainability (IFS) and Adjunct Professor of the NSD, in a keynote speech at a forum on digital economy recently held in Boao, Hainan.

 

He said that within a span of merely eight years, China has erected the world’s largest green bond market, which has been providing financing for the so-called ‘Three New Types’: photovoltaic cells, wind power, and electric cars. The capital mostly emanates from the country’s green finance system, which comprises banks, bond market, stock market, and funds.

 

Besides playing an instrumental role in China’s green finance, Ma Jun’s strenuous efforts resulted in the establishment of G20 Green Finance Study Team, which has been upgraded to be G20 Green Finance Working Group. He has been Co-Chairman of the Group since 2016, of which the accomplishments include forming a series of new global consensus, heading the drafting of common standards with Europe, and opening up cross-border capital flows between the two largest markets in the world. In addition, G20 has extended explicit support to International Sustainability Standards Board (ISSB) standards, which are highly important disclosure standards for green finance that unify the definitions of indices and specify indices for disclosure.

 

The next phase of green finance will be the making of a financial framework to facilitate global transformation, said Ma Jun. This is because industries with high carbon emissions account for 90% of GDP and require an enormous amount of financing to go green. Consequently, he believed three major challenges are to be tackled. The first one is to identify projects in high carbon-emitting industries that are truly capable of transforming into green ones; they should be allocated more resources so that the overall economic development can be achieved. The second - and an urgent one - is to get ISSB standards adopted in China. Lastly, as most green finance projects still concentrate on traditional technologies and don’t cover a great deal of green technologies, Ma Jun called for extensive mobilization of PE and VC funds to enter the domain to back up banks and bond market.