UK-China green finance initiative launches in London

The Bank of China's London branch hosted an event on Thursday to launch the UK-China Nature and Biodiversity Finance Work Stream, and discuss sustainability priorities and cross-border collaboration between China, the European Union, and the United Kingdom.

The event, part of London Climate Action Week, brought together leaders from financial institutions, NGOs, academia, and research organizations to discuss green finance best practices and policy recommendations for addressing sustainability challenges.

The work stream, as part of the policy outcomes of the 11th China-UK Economic and Financial Dialogue held in Beijing this January after a six-year hiatus, emerged from China and the UK's agreement to promote collaboration under the China-UK Green Finance Taskforce.

Jointly led by Bank of China's London branch and Standard Chartered Bank, it aims to mobilize Chinese and British financial institutions to increase investment in nature and biodiversity protection while managing risks from ecosystem loss, according to Bai Yunwen, vice-president of the Beijing-based Institute of Finance and Sustainability.

Meetings are expected to alternate annually between China and the UK, with small-scale discussions taking place throughout the year whenever possible, said Bai.

The China-UK Green Finance Taskforce is a key outcome of the 9th EFD in 2017.

Charles Bowman, co-chair of the China-UK Green Finance Taskforce and former lord mayor of London, said that green finance is "absolutely at the core" of the 11th EFD.

He also noted the recent positive momentum in Sino-British green collaboration, citing two ministerial dialogues on climate and environment held in London in June. An MoU was signed at the department level to deepen exchanges and strengthen collaboration in areas including climate adaptation, carbon market development, climate finance, and methane emissions control.

Bowman described the taskforce as an "extraordinarily smart, clever, and well-established" instrument to help facilitate the agenda, and he pledged to further promote its outcomes and provide proper support for the newly launched work streams moving forward.

Diana Acconcia, director for international affairs and climate finance in the Directorate-General for Climate Action of the European Commission, said in her keynote speech that climate action stands at a critical juncture, as 2025 marks the 10th anniversary of the adoption of the Paris Agreement, but could also be one of the warmest years.

"The urgency has never been so great," she said. "It is hugely important that the EU, the UK, and China join forces to bring about the transformation we need to change our course, and to go on the pathway of prosperity, especially under the current political environment."

She also highlighted that the green transition benefits the economy rather than hindering growth. "In 2023, 30 percent of the EU GDP growth came from the clean energy sector."

"But more will need to be done," she said, pointing to the need for all stakeholders to accelerate net-zero goals, facilitate capital flows, and unlock greater investment for less advanced economies, and more.