New partnership set to shape China’s climate finance policy
- 03 July 2012
BEIJING: The Climate Group and The Central University of Finance and Economics’s Research Centre for Climate and Energy Finance launched their new project, Shaping China’s Climate Finance Policy and held their first advisory council meeting as a joint partnership at a high-level event in Beijing, June 28, 2012.
The project launch event attracted expert guests including Wenhang Huang, Director of the Division of International Cooperation, Department of Addressing Climate Change, the National Development and Reform Commission and John Edwards, Prosperity Counsellor, the British Embassy.
The new collaboration will build a Chinese-orientated climate finance research and policy recommendation platform, that aims to improve China’s climate finance policies by coordinating finance sources and management systems.
Finance is critical to tackling climate change. From international negotiations, developed countries have committed to jointly mobilizing US$100 billion dollars a year by 2020 to address the needs of developing countries. At the national level, the introduction of both energy efficiency policies and the availability of clean technology has led to increased investment in low carbon sectors.
But while the Chinese Government’s recent investment in promoting energy efficiency and renewable energy sources has also led to a diversification of fund sources, the climate finance policy the new project hopes to mobilize will include a framework that leverages social capital as well as improves fund utilization efficiency.
With China's ever-increasing commitment to climate change, Shaping China’s Climate Finance Policy is a critical catalyst for China’s low carbon economy transformation. The partnership will not only systematically study the capital flows and management systems of climate finance, but also explore the innovative policies and financial instruments that will drive social capital into the low carbon sector.
The project brings together a group of 25 experts called the Climate Finance Advisory Council, which includes the Counselor of State Council of PRC Yanhua Liu; Director of China Clean Development Mechanism Fund Management Centre, Huan Chen; Deputy Director of Ministry of Finance’s Research Institute for Fiscal Science, Ming Su; Deputy Director of Ministry of Environmental Protection’s Policy Research Centre for Environment and Economy QingDan Yuan; President of the United Nations’ CDM Executive Board Maosheng Duan; Chairman of the UK Climate Change Capital Group James Cameron and Former Secretary General of the United Nations Framework Convention on Climate Change (UNFCCC) Yvo de Boer.
During the year-long project, the Advisory Council will meet three times to put forward a list of possible policy recommendations. The finalized Climate Finance Policy System study, to be released in March 2013, will be based on the domestic status quo and the best international practices and policies. The study will also provide a point of reference for decision-making government bodies as well as academic and financial institutions. It will also serve as a catalyst for climate financial institutions and enterprises, and help convene a high-level conference on climate finance at the end of the year.
The partnership between The Climate Group and the Central University of Finance and Economics will be assisted by funding from the UK SPF Prosperity Fund.
Changhua Wu, Greater China Director, The Climate Group, said: "While the prospect of global climate financing is not yet fully clear, there is an urgent need to begin systematically thinking about how to address the domestic response towards climate change - and achieve a low carbon economy’s required capital investment. The Chinese Government’s promotion of energy efficiency and emerging strategic industries provides a rare opportunity for the development of climate financing, where leveraging social capital can be made to invest in the low carbon sector.”
The Director of the Central University of Finance and Economics’ Center for Climate and Energy Finance Professor Yao Wang also said: "In the emerging field of climate finance, the current research supporting decision-making is still inadequate, with some key issues that still need to be studied such as the demand for funds, the source of climate change funds, climate finance management system, and how to leverage the social capita. Under Government incentive policies, financial institutions and other private capital that are heavily involved in climate finance will open a new chapter in China.”