Analysis of Climate Finance Policies and Innovative Finance Mechanisms in Guangdong

Policy Mapping and Case Studies
Reading time: 17 minutes
12 December 2014

"Analysis of Climate Finance Policies and Innovative Finance Mechanisms in Guangdong: Policy Mapping and Case Studies" by The Climate Group and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH analyzes for the first time China’s existing climate finance policies and mechanisms.

The report aims to stimulate a broader discussion on climate finance systems and mechanisms by providing three in-depth case studies of real-life climate finance projects in China, and presenting a set of policy recommendations for the region based on its findings.

China’s outstanding economic growth is leading to massive urbanization, which is exacerbating the country’s pollution levels to the point factories are being temporarily shut down. To achieve the necessary transition to a low carbon economy, funding will play a key role.

Climate action and clean energy development is mainly funded by the government, which has set ambitious emission reduction targets for the country’s provinces.

The focus of this new report falls on the province of Guangdong in particular, which has an emissions reduction target of 18%: the highest in China.

Among the report's findings, authors highlight that the government’s budget allocation to climate mitigation and adaptation in Guandong is unbalanced and that there is a lack of efficient mechanisms through which government funds can be spent.

The results of this research are expected to support constructive discussion and collaboration on climate finance in the framework of the Sino-German Climate Partnership Project, which GIZ is implementing on behalf of the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety. 

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