Zhou Xiaochuan: Zero Tariff and zero barrier should be implemented in international trade related to climate change

category:Finance
 Zhou Xiaochuan: Zero Tariff and zero barrier should be implemented in international trade related to climate change


First, to achieve carbon emission reduction and carbon neutralization, it is necessary to clarify what kind of incentive mechanism is mainly relied on. The incentive mechanism should come from the carbon market. Then, if the carbon dioxide emission market can work normally, it is necessary to formulate the total amount and decompose the total amount. Then China needs to step up its efforts in this regard. After these plans are clear, we will find that the task of carbon neutrality in 2060 is quite arduous, and great efforts must be made.

Second, we say that many industries are required to participate in the future carbon neutral program. Of course, there are some major industries, such as energy, transportation, etc., but there are many other industries that they need to participate in. Therefore, we need to give the parameters of various industries related to carbon emissions, future emission reduction plans and the emission reduction effect of new technologies and processes.

Third, in the second half of carbon neutralization, more attention may be paid to carbon deposition, or carbon sink and general carbon goods, so as to ensure carbon neutrality in the future.

Fourth, we need to compare the two main incentive mechanisms, one is the carbon dioxide emission market, the other is the carbon tax. So we say that from the perspective of financial markets, the carbon dioxide emission market has a more important role and greater potential. If carbon tax is to be carried out, it should also refer to the price formed in the carbon market.

We hope that we can pay attention to the issues that can be done in the financial market in this respect.

There are three ideas. One is to find ways to connect the carbon market. For example, in our capital market, such as the stock market, China launched the Shanghai Hong Kong stock connect in 2014, then the Shenzhen Hong Kong stock connect, and then the Shanghai Luntong stock connect. However, the Shanghai Luntong stock connect is still very preliminary, and there are many places to deepen and strengthen. The worlds savings and investment are inherently liquid, so is the investment in climate change. Facing the phenomenon of global warming, if the investment is profitable, it is also the global income. If the market is separated, the pricing itself will be defective and the market efficiency will be low. It is not conducive to mutual exchange and coordination of global actions. Even if the market is divided, it will create too many opportunities for excessive speculation. On this basis, we should also jointly study the mechanism of carbon price rationalization to prevent unreasonable ups and downs. In theory, the larger the market size, the more reasonable and stable the relationship between supply and demand. Therefore, I would like to briefly mention that, referring to the practice of the Shanghai Hong Kong stock connect, the next step is to study the connection between carbon markets in China or Asia and those in Europe.

The second is just mentioned that the EU has long put forward some opinions and ideas on the carbon emission of transnational aircraft and ships. However, in the past, peoples understanding has not been unified, and there is such a phenomenon in China. Then there will be a boycott of the EUs carbon emission charging for aircraft entering and leaving Hong Kong. I think gradually, peoples awareness of climate change will continue to improve, and so will China. In particular, President Xi Jinping has led us all in this regard. But if there is a charge for carbon emissions, who will pay the tax? Who controls the use? It can be imagined that it is difficult to coordinate. If we have a global financial institution, even a small and limited function, it is possible to avoid too much controversy. This is a bit like the European Union in the early 1990s, when Europe was engaged in integration. At that time, there was no coordination of monetary policy and fiscal policy at the beginning, and then there was the euro and OECD. Later, after the global financial crisis, there was a demand for deposit insurance, so it gradually had the function of fiscal coordination. Of course, its not easy. We suggest that a special fund should be established between China and Europe or between Asia and Europe to deal with the emission problem of trans Eurasian traffic. According to the price of carbon emission, the income should be transferred to the fund, and the expenditure should be used for new traffic or other applications of emission reduction or carbon deposition. Then, such efforts also make an attempt to manage the cost of other carbon containing costs when carbon trading is more mature in the future.

The third topic that should be studied is that international trade in climate change, including trade in goods and services, including equipment and technology, should be implemented with zero tariffs and zero barriers. We said that we should particularly emphasize that emission reduction and carbon neutralization require the use of a large number of technologies and equipment. We should not only lower the barriers, but also use a variety of green financial mechanisms to cooperate and support, so that this work can be carried out smoothly.

Well, the above is a speech I made for this conference. I hope it will help you to study the topic. If it is not right, please criticize and correct it and arouse your discussion. Once again, I wish the conference a complete success. Thank you.