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Green Finance for Good

Jul 13-2022   



China’s carbon neutrality targets shall be achieved by 2060, and green and low-carbon investments can amount to 400 trillion yuan over the next three decades, according to speakers at the recent Chengze Forum of the NSD.

 

The third edition of the forum, held on July 10, centered on the country’s double-carbon targets and finance in the transitional period. Dr. Ma Jun, President of Beijing Institute of Finance and Sustainability and part-time professor of the NSD, and Mr. Yang Fuqiang, Senior Advisor for PKU Institute of Energy’s climate change and energy transition program, delivered speeches and had a dialogue discussion.

 

Prof. Ma said that China has become the largest green finance market in the world as 10% of the country’s economic activities are green ones at present. The 90% non-green activities comprise those that can make transition to go green and those that cannot. Regarding the former, Prof. Ma suggested laying out a finance framework to guide more social capital to facilitate their transition. Though financial market practices in recent years have developed rapidly, problems still abound, such as unclear definitions of transitional activities, underdeveloped financial tools, and a dearth of policy stimulus mechanism.

 

He pointed out that G20 is working on such a finance framework and China is working in lockstep on research and policy. He suggested that while waiting for the release of a national catalogue for transitional finance, local governments can consider making a catalogue of their own for incorporation into local platforms that serve to connect investment projects with finance.

 

Researcher Yang Fuqiang focused on the relationship between energy transition and finance. He estimated that China’s coal consumption will peak out by 2023, oil by 2025, carbon emissions by 2025-2027, and natural gas by 2030-2035; as a result, the country will hit carbon neutrality targets by 2055-2060.

 

Viewed as new engine for energy and economic development, carbon neutrality targets will provide enormous driving force for a number of sectors, including the environment and ecosystems, new energy, international trade, and transitional finance. China is taking and will continue to take the path to phase out reliance on coal, transcend the oil age, and embrace the future of new energy, he concluded.

 

At the end of the event, He Xiaobei, Deputy Director of NSD Macro and Green Finance Lab, presented the quarterly Climate Policy and Green Finance. Prof. Huang Zhuo, Co-Director of the Lab and Assistant Dean of the NSD, hosted the forum.

Green Finance for Good

Jul 13-2022   



China’s carbon neutrality targets shall be achieved by 2060, and green and low-carbon investments can amount to 400 trillion yuan over the next three decades, according to speakers at the recent Chengze Forum of the NSD.

 

The third edition of the forum, held on July 10, centered on the country’s double-carbon targets and finance in the transitional period. Dr. Ma Jun, President of Beijing Institute of Finance and Sustainability and part-time professor of the NSD, and Mr. Yang Fuqiang, Senior Advisor for PKU Institute of Energy’s climate change and energy transition program, delivered speeches and had a dialogue discussion.

 

Prof. Ma said that China has become the largest green finance market in the world as 10% of the country’s economic activities are green ones at present. The 90% non-green activities comprise those that can make transition to go green and those that cannot. Regarding the former, Prof. Ma suggested laying out a finance framework to guide more social capital to facilitate their transition. Though financial market practices in recent years have developed rapidly, problems still abound, such as unclear definitions of transitional activities, underdeveloped financial tools, and a dearth of policy stimulus mechanism.

 

He pointed out that G20 is working on such a finance framework and China is working in lockstep on research and policy. He suggested that while waiting for the release of a national catalogue for transitional finance, local governments can consider making a catalogue of their own for incorporation into local platforms that serve to connect investment projects with finance.

 

Researcher Yang Fuqiang focused on the relationship between energy transition and finance. He estimated that China’s coal consumption will peak out by 2023, oil by 2025, carbon emissions by 2025-2027, and natural gas by 2030-2035; as a result, the country will hit carbon neutrality targets by 2055-2060.

 

Viewed as new engine for energy and economic development, carbon neutrality targets will provide enormous driving force for a number of sectors, including the environment and ecosystems, new energy, international trade, and transitional finance. China is taking and will continue to take the path to phase out reliance on coal, transcend the oil age, and embrace the future of new energy, he concluded.

 

At the end of the event, He Xiaobei, Deputy Director of NSD Macro and Green Finance Lab, presented the quarterly Climate Policy and Green Finance. Prof. Huang Zhuo, Co-Director of the Lab and Assistant Dean of the NSD, hosted the forum.