Expert Perspective ｜ Wang Wen: Climate Investment Finance and China Green Financial Direction

Editor

Hongqiao International Economic Forum, as an important part of the China International Import Expo, focuses on key hot topics in the global economic field, conducts discussions through various forms, and contributes the wisdom of Hongqiao for the promotion of global open development.

The Hongqiao International Economic Forum has always paid attention to related issues related to green development, and has held sub -forums such as "green development and new global economic and trade pattern in the context of climate change" and "green finance assistance". Recently, Wang Wen, Executive Dean of the Chongyang Financial Research Institute of Renmin University of China and Secretary -General of the Green Financial Professional Committee of the Chinese Finance Society, explained the financial experience of climate change and the next direction. Study for reference.

At the end of May 2022, the Ministry of Ecology and Environment revealed that my country's climate investment and financing pilots have basically completed the review work and will soon start operation. This means that since December 23, 2021, the nine departments such as the Ministry of Ecology and Environment and the National Development and Reform Commission jointly issued the "Notice on the Pilot Work of Climate Investment and Financing" in less than half a year, and the local climate investment and financing pilot layout has been completed. Climate investment and financing is a booster for achieving the "double carbon" goal. According to relevant agencies, the demand for carbon peaks from 2021 to 2030 is about 14 trillion yuan to 22 trillion yuan, and the demand for carbon neutrality from 2030 to 2060 will reach 100 Trillion yuan.

It can be expected that in the second half of 2022, under the advancement of the pilot of climate investment and financing, China will inevitably accelerate the accumulation of financial experience in responding to climate change, play a climate governance role in green sustainable development, absorb international advanced experience, and promote " Green financial reform and innovation under the "double carbon" target.

The inflection point of global climate investment and financing has appeared

According to the Global Risk Report in 2021, "Climate Operation Failure" has been listed as the second most influential and most likely threat in the next decade. Finance must play a practical and effective role before the outbreak of climate risk, and promote investment and financing actions corresponding to climate change. This is also in line with the United Nations definition and direction of "climate investment and financing": local, state or multinational investment and financing -from the public, private and alternative investment sources, and aims to support the slowing and adaptive operation of climate change.

In the field of national public investment and financing, at the 15th meeting of the United Nations Climate Change Framework held in Copenhagen in 2009, western developed countries promised to achieve a $ 100 billion climate investment and financing target for developing countries by 2020. However, how to raise and account for climate investment and financing funds has always been a common problem in the theoretical and practical circles.

In the field of private and alternative investment and financing, in recent years, the enthusiasm of financial institutions to participate in climate investment is increasing, but there is still a large gap in the overall demand of climate investment and financing. A survey by British non -profit organization Share Action on 75 largest responsible investment asset management companies in the world shows that half of them are at the lowest two levels. The IMF "Global Financial Stability Report" shows that the proportion of traditional investment funds to climate -related resolutions in 2020 when shareholders' resolutions are less than 50%. Although it is much higher than about 20%in 2015, it is still far lower than that Sustainable theme (60%) and environmental protection theme (70%). The size of the climate -themed fund (US $ 130 billion) only accounts for 0.26%of the global investment fund ($ 5 trillion), which is far less than 7%of the sustainable labeling funds (US $ 3.6 trillion). There is huge potential and room for development.

In 2021, it can be described as global carbon neutralization, and carbon neutralization has become the policy consensus of most countries. The global capital market tends to believe that the inflection point of climate investment and financing began to appear. The United Nations Climate Change Framework Convention and the institutions such as the Green Climate Fund, the World Bank and the regional multilateral development bank have continued to accelerate the systematic accounting framework and process of climate investment and financing. The fund is developing rapidly, and the large -scale capital of the environment, society and corporate governance (ESG) target assets has become urgent. It has allocated the risk of hedging the high -carbon emissions industry by allocating low -carbon assets with climate response. For example, at the end of 2021, the Norwegian Government Global Pension Fund (GPFG), the Dutch Public Department Pension (ABP), and Yingjiehua, a large -scale physical investment management company in the UK, have adopted "decarburization" measures, claiming that they will be sold quickly in the next 1 to 3 years. Delipp into its high -carbon emissions assets and investment projects, supervise and urge fossil fuel companies to accelerate the response to climate change. It can be seen that under the policy consensus of global carbon neutrality, the adjustment of climate asset structure has become an imperative thing in the financial community. As global climate governance and carbon neutralization enter the fast lane, the importance of climate financing in the 21st century global carbon neutralization process will gradually increase.

China's policy deployment and market actions that promote climate investment and financing are also rapid and timely. In August 2016, seven departments such as the People's Bank of China and the Ministry of Finance jointly issued the "Guiding Opinions on the Construction of the Green Financial System", which aims to build a relatively complete green financial policy system. In October 2020, the Ministry of Ecology and Environment, the Development and Reform Commission, the People's Bank of China, the CBRC, and the Securities Regulatory Commission issued the "Guiding Opinions on Promoting the Coperly Investment and Financing of Climate Change". Announce the first implementation and promotion documents since the "double carbon" goal. After issuing the notification of the climate investment and financing pilot in 2021, a group of pilot cities with strong willingness to implement, excellent basic conditions, highly basic conditions, and typical climate investment and financing pilot cities appeared one after another. For example, on May 26, 2022, "Several Provisions of Green Financial Development (Draft) of Shanghai Pudong New District (Draft)" publicly solicited opinions and clearly wrote the clause of "carrying out the pilot work of climate investment and financing", and required to explore differentiated investment and financing models for differentiated investment and financing models to use it in order Market means strengthen the orderly investment in various types of funds, innovate incentives and restraint mechanisms, improve the linkage mechanism of fund arrangements, and inhibit high -carbon investment. A comprehensive investment and financing operation of climate change has quietly launched.

Three characteristics of China Climate Investment Finance

According to the "Pilot Work Plan for Climate Investment and Financing" issued at the end of 2021, "Climate Investment and Financing" is defined as "the goal of contributing to the country's independent contribution and low -carbon development goals, guiding and promoting investment and financing in the field of climate change in the field of climate change. Activity is an important part of green finance. " The goal of the pilot work is that through the efforts of 3 to 5 years, the pilot place basically forms a policy environment that is conducive to the development of climate investment and financing. The international cooperation platform for climate investment and financing allows various factors such as funds, talents, and technology to fully gather in the field of climate investment and financing.

Compared with the United Nations' concept of climate investment and financing, the definition and goals of China's climate investment and financing have more detailed to the coordination, comprehensiveness and implementation of funds, talents, technology and policies, systems, and platforms. As a new investment and financing system, the work of China Climate Investment and Financing must not only pay attention to rhythm and gradual nature, but also pay attention to effectiveness and feasibility. The pilot work must absorb international advanced experience, and it must also reflect the characteristics that are adaptable to the Chinese national conditions.

First, government forces and market forces are dual. In recent years, the Chinese government has launched a large number of policies related to green finance, and has guided the market to upgrade the concept of climate investment and financing and product innovation. The characteristics of the financial system led by banks and the government's economic model also determine that China will gradually form a climate investment and financing system with the basic point of the basic policy of green credit and the auxiliary of green bonds and green funds as auxiliary. With the advancement of investment and financing pilot work, Chinese companies will become more and more aware of the importance of responding to climate change, promoting green development, and realizing low -carbon emission reduction, and gradually attach importance to the impact of the policy environment changes to the industry and industry. Multi -hybrid climate financing models including private capital plus bonds, equity, funds, etc. will also be increasingly innovative and developed.

The second is the coordination of pilot cities and institutions. The place is an important foundation and key link for the implementation of my country's carbon peak carbon neutrality and the goals. Climate fund demand and supply contradictions are generally prominent. At present, the awareness of local climate change and low -carbon development is relatively weak, the climate investment and financing system and mechanism are not yet complete, the relevant policies have not formed system response, professional teams and talent reserves are insufficient, and lack of effective supervision, restrictions, assessment and incentives mechanism. In order to deeply promote local climate investment and financing work, it is urgent to accelerate the development of climate investment and financing pilots focusing on the purpose of responding to climate change and strengthening the orderly investment environment of various funds, and explore differentiated investment and financing models, organizational forms, services Methods and management systems, by effectively suppressing the linkage mechanism of local high -carbon investment, innovative incentives and restraint mechanisms, and fund arrangements, effectively play the leading role of "carbon reduction", and provide strong support for promoting local green low -carbon and high -quality development It has formed a successful experience that can be replicated and promoted, laying a solid foundation for the realization of the carbon peak carbon and carbon and carbon carbon.

The third is the combination of long -term goals and short -term steps. Climate change is a major international issue of cross -century. Climate investment financing fully runs through the linkage relationship between long -term planning and short -term tasks at the micro level, focusing on the combination of long -term goals and short -term steps. At present, the phased goals under the long -term planning of the "dual carbon" are still different in different industries and different enterprises. In the long run, carbon neutrality needs to consider industry characteristics. In the short term The task allocation and constraint output are realized. Climate investment and financing activities have implemented the "dual carbon" target and low -carbon governance on business details. This will further promote the environmental impact of supply chain behavior and market activities and the environmental impact of reducing carbon emissions as its core goals. "The long -term goal continues to inject power.

The next direction of China Climate Investment and Financing

In recent years, the international financial community has generally believed that the response to climate change itself will bring a lot of capital demand. Low -carbon assets have higher and higher investment value and growth potential. Financial institutions need to adjust the asset group merger in time. Calle the risk of high carbon emission industry. Finding the practical direction of climate investment and financing is an important basis for promoting the smooth and orderly development of various tasks under the goal of "double carbon". First, strengthen the sense of coordination, and establish a coordination and linkage mechanism on the "double carbon" goals between the central and local and institutions in the climate investment and financing activities.

At present, the central and various ministries and commissions have established a preliminary coordination management mechanism in the field of climate investment and financing. In the future, we need to further proceed from the pilot of climate investment and financing. Based on the central guidance and coordination, the national layout, local development, local development, local development, local development, and local development of the climate investment and financing system Industry innovation and departmental supervision.

First of all, in local deployment, climate investment and financing pilots compared to the green finance pilot, in addition to carrying out capital drainage, they should also pay attention to the relationship between the national macro climate goals and the local green development process, climate investment and financing and climatic adaptation of climate adaptation The system relations between types of cities have accumulated pilot experience, and finally established a platform with international influence climate investment and financing cooperation platforms to leverage more international climate investment. Driven by the central government, climate investment and financing should support localities to combine urban modernization and local "dual carbon" goals, guide funds to invest in the field of climate change, and continuously update and upgrade the target planning of the staged industry, and clarify the investment and financing goals of different periods in different periods. Policy direction and funding demand plan, simultaneously update the project case library to promote social capital to invest climate funds into related fields, and grasp investment opportunities in each period to match short -term and medium- and long -term investment needs.

Secondly, in the practice link, the central and local governments can consider starting from local areas, raising special climate funds into the field of climate infrastructure construction, strengthening the response to climate change disaster, and the environmental foundation of strengthening urban climate defense to consolidate climate investment and financing activities. , Improve the "urban climate credit" and "urban climate toughness", and use the innovative achievements of related climate investment and financing to develop the global climate financial market and expand the international cooperation and use of climate funds.

Finally, in the path planning, promote the upgrade of the central and local carbon neutralization and target curves through the pilot of climate investment and financing. The process and the 21st century temperature control goals are timely guided the direction of climate investment funds in a timely manner according to the relevant progress, as an important principle for local policy planning and market participation.

Second, use innovation to promote the green sustainable transformation and upgrading of Chinese finance with climate investment and financing.

On the one hand, from the perspective of reducing emissions and slowing climate change, the smooth development of climate investment and financing helps to continuously improve the ability of financial institutions to carry out carbon accounting and evaluate the economic benefits of carbon reduction, and promote the green transformation and credit upgrade of the financial system Essence Climate investment and financing dependence on climate change and carbon emissions is higher than that of traditional green finance. The carbon accounting upgrade under climate investment and financing helps to use climate investment and financing work to improve the long -term difficulty of green finance, that is, green finance is mainly covered in large enterprises. And those small and medium -sized enterprises and low -income people who have not been covered are precisely the key support objects for climate targets and climate finance. Therefore, the local climate investment and financing pilot can be used as a breakthrough, and new credit models and structures are explored from the perspective of green financial financial.

On the other hand, from the perspective of improving carbon exchange and adapting to climate change, climate investment and financing is an important financial way to establish and improve the value realization mechanism of ecological product value. First, climate investment and financing helps to attract and motivate financial capital to participate in the market of ecological value and actively develop ecological resources rights and interest transactions; second, the monetization evaluation system that establishes the establishment and improve the ecological value, which will help promote promotion The reasonable monetization of ecological value; third, the pilot of climate investment and financing to establish a natural capital accounting system related to carbon increasing foreign exchange, which helps to tap the climate asset layout in the local climate investment and financing pilot.

Third, improve the implementation, improve the environmental information disclosure and accounting system under climate investment and financing, and establish a financial database and project library for climate investment and financing.

Under the perspective of climate investment and financing, the environmental information disclosure and environmental accounting system, including carbon emissions accounting verification, etc., will help urge enterprises to reduce emissions, and gradually establish an environmental constraint production model and financing system. The information disclosure and accounting system of climate and environment will be innovative and developed in the pilot of climate investment and financing, and it is increasingly focusing on the actual needs of achieving the goal of "dual carbon".

On the one hand, financial institutions should pay attention to establishing and improving the environmental information disclosure and accounting system under climate investment and financing, and implement the basic environmental data collection and disclosure of climate investment and financing. Since the second half of 2021, the Central Bank has actively promoted banking financial institutions to introduce a green financial evaluation plan to explore the evaluation method that independent of ESG and environmental governance capabilities, which helps to evaluate the effect of carbon emission reduction financial policies. The asset allocation upgrades under the "dual carbon" goal to promote the focus of the corporate climate financing credit evaluation system from financing demanders to financing suppliers.

On the other hand, establish and improve climate investment and financing databases and project libraries. First, the tracking statistics and accounting of climate and environment projects can be carried out in the relevant asset allocation related to greenhouse gas emissions and climate change, and simultaneously develop resource accounting and environmental accounting business. ; Second, based on climate tracking statistics and accounting data, attach importance to the digital construction of climate and environmental accounts and green financial accounts. It is promoted by financial institutions or third -party information service providers to cover the greenhouse gas emissions, carbon reduction, and environmental pollutants in detail , Carbon quota, stock and incremental data, and establish a related information sharing mechanism. Hongqiao International Economic Forum is an important part of the China International Import Expo. It is hosted by the Ministry of Commerce and the Shanghai Municipal People's Government, and organized by the China International Import Expo and the National Convention and Exhibition Center (Shanghai). International organizations such as the WTO, the United Nations Development Planning Department, the Trade Development Conference, the Food and Agriculture Organization, the Industrial Development Organization, and the International Trade Center are cooperative units.

Hongqiao International Economic Forum consists of the opening ceremony of the Import Expo and the main forum of Hongqiao Forum and multiple sub -forums. With "global opening up" as its core theme, international public products are located, focusing on the topic of world economic hotspots, and gathering well -known people in the international political and business community. Establish a high -end dialogue exchange platform.

Source: "China Finance" 2022, No. 12

Author: Wang Wen

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