G20 is perfect vehicle for blend of innovation, regulation

The G20 Leaders Summit is the perfect vehicle to help leaders find a balance between innovation and regulation, and therefore to drive forward sustainable global development, says Stephen Perry, chairman of the 48 Group Club, an independent UK business network promoting business links with China.

China can also play a significant role in leading global innovation across various sectors, and play a stronger part in promoting sustainable regulation and governance; the China led Asia Infrastructure Investment Bank and the Belt and Road initiative are key examples, Perry said.

"It is a huge challenge to find the balance between innovation and regulation. They do not sit easily together but G20 is the perfect vehicle to explore such issues," he said to China Daily ahead of the G20 meeting in Hangzhou on September 4-5.

"In my view, the Belt and Road initiative is the greatest development project focusing on the theme of sustainable development and transnational economic development. Similarly, AIIB proposes a new model of financing, with a focus on sustainable projects" said Perry.

"The Belt and Road initiative creates a big difference to the global regulatory environment, because by emphasizing on individual projects' along the Belt and Road to fulfill sustainable criteria, it encourages many industries to fundamentally think about sustainability."

For example, factories producing tools to be used in buildings and infrastructures under this framework will rethink about the production techniques to be implemented for the Belt and Road projects, and their business strategy and methods could change as a result, he said.

Sustainability is at the core of the Belt and Road projects, as the Chinese government is promoting the financing of environmentally efficient and low carbon-based infrastructure projects along its route.

The China-led AIIB champions a funding and operation model based on the concepts of 'lean, clean and green', cutting down bureaucracy and channeling funds into environmentally sustainable projects.

Perry said it is important for G20 leaders to set achievable goals which different countries' government leaders can realistically commit to.

For example, commitment for carbon emission reduction at the Paris climate change conference in 2015 achieved such goals whilst the Copenhagen Summit in 2009 did not.

"The Paris summit allowed global leaders like the US and China to take the initiative to set commitments for their own countries, and their leadership encouraged other nations to follow," Perry said.

In comparison, the Copenhagen talks is remembered for its chaotic discussions as global leaders had no clear agreement to sign, and were in disagreement as to who should bear the responsibility for reducing emissions.

Perry added that G20's role is especially prominent following the 2007 financial crisis, to find new answers to problems "created by the inadequate regulation of the financial sectors which led to the Lehman crisis", such as significant quantitative easing by governments such as the US.

"G20 is the only body which is small enough to address these challenges but representative enough of the world's population and wealth to find financial, monetary and economic answers and structures to help sustainable development to bring peace and prosperity to the people of the world," said Perry.

He said China's role in future global development is key. "China has had the biggest effect on the world's growth for the last 20 years and it is now changing its model to a more mature domestic market but focusing on development and growth in Eurasia, spreading to Africa and within Asia. Building a new transport and communications infrastructure in this vast area can stimulate global growth and provide the market for new and sustainable technologies."

To contact the reporter: cecily@mail.chinadailyuk.com