Investment boost sought to aid green transition

In moves to accelerate the country's low-carbon transition, several central government bodies have vowed beefed-up measures to further tap the potential of market and financial mechanisms, hoping to motivate more private and foreign investment to help tackle climate change.

"To peak carbon dioxide emissions and achieve carbon neutrality is an extensive and profound systemic reform for the economy and society," said Li Gao, director-general of the climate change department at the Ministry of Ecology and Environment, in an exclusive interview with China Daily.

The reform cannot be supported only by investment from the government, he emphasized. "It needs systematic response from the financial system to guide and promote more investment."

China aims to peak carbon dioxide emissions before 2030 and achieve carbon neutrality before 2060.

He said the ministry has made encouraging progress in top-level design, talent cultivation, and pilot and demonstration projects as it strives to promote finance aimed at mitigating climate change.

In 2019, for example, the Climate Investment and Finance Association was established at the Chinese Society for Environmental Sciences. The association has been a platform of information exchange for the climate finance sector, he said. It also facilitates cooperation between the sector and industrial entities, as well as fostering international cooperation.

Li said the ministry, together with eight other government bodies, including the National Development and Reform Commission, started pilot programs for climate investment and finance late last year.

He pledged a series of measures to further promote the work.

"We will accelerate the building of a policy system for climate investment and finance," he said. "To build synergy, efforts will be made to incorporate climate change as a factor to consider when drafting micro policies, as well as industrial policies of different sectors and government departments."

To increase the ability of standards to lead expectations and provide motivation, the ministry will strive to improve the country's current standards for climate investment and finance, he said, adding that effectiveness in tackling climate change will be a major measurement index in the work.

He said the ministry will encourage and guide private and foreign investment in climate investment and finance.

"We will also endeavor to deepen international cooperation on climate investment and finance," he added.

In order to encourage regions to explore innovative modes and instruments for carrying out the work, guidance and support will be offered for regional pilot programs.

The NDRC said in its 2022 plan for national economic and social development that it will improve the system for green technology innovation and open a national center for trading green technology.