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Business / Industries

Report says grow green cooperation

By Cecily Liu (China Daily UK) Updated: 2016-09-15 18:06

NGO advises Foreign Office to work with China to encourage environmentally friendly investing

A report for the British Foreign Office by the non-profit organization Climate Bond Initiative proposes the country furthers its collaboration with China in the area of green finance.

The report, unveiled in London on Wednesday, advocates that the two countries increase the issuance of green bonds, translate policy strategies into green projects, jointly promote green market awareness, increase central bank research collaboration and work to harmonize green definitions.

Sean Kidney, CEO of Climate Bond Initiative, said that China and the UK have great compatibility for green finance cooperation because China is an engine of growth for the world economy and the UK is a leading international financial center.

China has led the world in the sale of green debt this year. As of July, out of 25.69 billion pounds ($33.83 billion) in green bonds issued globally, China issued 9.02 billion pounds.

Those numbers reflect robust growth from last year, when green bonds worth 27.46 billion pounds were issued internationally, out of which 0.99 billion pounds was issued by Chinese organizations.

Green finance was put on the G20 agenda for the first time by China at this year's summit in Hangzhou.

The People's Bank of China and the Bank of England jointly chaired the G20 Green Finance Study Group, which presented a report at the summit that was accepted and endorsed by the G20 leaders.

The GFSG also partnered with various private-sector participants to develop green products, and its work contributed to and facilitated the Bank of China's announcement at the G20 meeting that the bank will issue offshore green bonds, giving international investors opportunities to finance environmentally friendly and sustainable projects in China for the first time.

The positioning of the green finance panel in the finance track at the G20 this year shows China has used its leadership to make sure green finance is recognized as a finance issue and not just an environmental one, said Michael Sheren, a senior adviser at the Bank of England.

Sheren co-chaired the GFSG alongside Ma Jun, chief economist at the Research Bureau of the People's Bank of China.

"China is a world leader in green finance, due to the size of China's green finance market, the amount of work that needs to be done, and the further commitments that need to be made," Sheren added.

His endorsement of China's green finance commitments was echoed by other top UK political leaders.

Simon Kirby, British economic secretary to the treasury (city minister), said he was glad to see Chinese President Xi Jinping making green finance a priority.

"The government rightly sees green finance as a catalyst for the country's development," said Kirby, who added that such a strategy will benefit not only China but countries around the world.

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