Lei Yao, deputy director of the Financial Research Institute of the peoples Bank of China, said at the sub forum that the proposal of the 30.60 carbon target highlights the responsibility of a big country and puts forward new targets and requirements for Chinas financial industry.
Financial institutions transform to green and low carbon
Ma Jun, director of the green finance professional committee of the China Finance Association, believes that we should fully learn from the experience of financial industry and regulatory institutions in developed economies such as Europe and the United Kingdom in supporting carbon neutrality. Ma Jun suggested: formulate green financial standards based on the principle of not damaging the goal of addressing climate change; strengthen the disclosure requirements of climate related information of enterprises and financial institutions; encourage financial institutions to carry out environmental and climate risk analysis; strengthen the incentive mechanism of green finance under the guidance of carbon neutrality; implement the China EU green partnership and vigorously introduce low-carbon technologies and low costs from Europe Funding.
Ye Yanfei, a first-class inspector of the Policy Research Bureau of the China Banking and Insurance Regulatory Commission, called on financial institutions to actively respond to climate change and effectively manage climate risk. He believes that the strategy, mission and design of low-carbon financial institutions must be based on the concept of green financial institutions, transformation strategy and design. Financial institutions should analyze asset allocation risk from policy adjustment, technological change, industrial boom and decline, carbon emission intensity, energy efficiency, investor preference and consumer preference, especially the concentration risk and market risk related to climate change. Avoid stranded assets and strictly control the risks of major projects such as coal power, coal chemical industry and coal mining. At the same time, we should do a good job in information disclosure and capacity building.
Ma Xianfeng, vice president of the China Securities and Financial Research Institute of China Securities Regulatory Commission, pointed out that the disclosure of environmental information by listed companies is of great significance to mitigating climate change, which will help investors effectively identify green enterprises and allocate funds to green and low-carbon listed companies, so as to help the development of national green and low-carbon economy. China has gradually established the mandatory disclosure system of environmental information of listed companies. On the one hand, regulators continue to strengthen the supervision of environmental and social responsibility information disclosure of listed companies, and are currently studying and formulating specific methods for listed companies to disclose environmental information in the form of ESG reports. On the other hand, the enthusiasm of ESG information disclosure and the quality of information disclosure of listed companies continue to improve. As listed companies ESG performance has gradually become an important dimension for investors to measure the investment value of enterprises, the main driving force to establish and improve the ESG information disclosure system also comes from meeting the needs of domestic and foreign investors.
Zhang Xiliang, director of the Institute of energy, environment and economics at Tsinghua University, said that in order to achieve the 30.60 goal, Chinas energy system needs to undergo a profound transformation. The main measures include: first, substantially increasing the proportion of non fossil energy. Only during the 14th five year plan period, China is expected to accelerate the development of non fossil energy from 15% to 20%. The proportion of coal consumption in the whole energy structure will decline rapidly, from 58% at present to 48% in 2030, and the carbon neutral target will drop to nearly 0 by 2060. The second is to further improve the efficiency and efficiency of energy utilization through industrial upgrading and structural adjustment, energy saving in technology and management. The third is to promote the electrification of terminal energy consumption departments. The electrification utilization rate of Chinas terminal energy sector will gradually increase from 27% at present to 32% in 2030 and 80% in 2060. Fourth, the introduction of carbon pricing mechanism. Through the continuous improvement of the top-level design, we should set the bottom price for the national carbon market, and gradually improve the level of the bottom price, and change to a more reasonable and effective price. Fifth, increase investment in low-carbon energy technology. Carbon neutral will bring an average annual green economy investment of more than trillion yuan from 2020 to 2060, providing a large number of new investment opportunities for the financial industry.
Liu Jiandong, risk director of Bank of China, said that as the source of support for the real economy, financial institutions should actively respond to the call of the state, change asset allocation, and play a key role in realizing Chinas goal of zero carbon prospect. First, commercial banks need to study the action plan of national policy level, the technical route of industrial upgrading, and adjust and optimize the allocation of asset structure combined with their own development strategy. Second, we should do a good job in risk identification and stress allocation of commercial assets in advance. Third, carbon emission reduction projects often have some problems, such as mismatch of term, high requirements of information disclosure, mismatch of cost and benefit, and difficulty in quantifying external effects, which seriously affect business sustainability. Therefore, sufficient external incentive mechanism is needed to offset business costs, such as finance and taxation, environmental protection, economic capital incentive and other supporting policies.
Huang Haizhou, managing director of China International Finance Corporation, said that Chinas 30.60 goal is more challenging and shows the responsibility of big countries, considering that the energy demand of developed countries in Europe and the United States has tended to be saturated, while Chinas energy demand is still growing. According to the research of the new power energy team of CICC research department, this grand goal will not only accelerate Chinas energy transformation, but also have a huge impact on the economy. China will realize energy decarbonization by increasing the proportion of non fossil energy on the supply side, and increase energy conservation and emission reduction control on the demand side, so as to complete the carbon neutral path of energy structure from high carbon to low carbon to zero carbon. He also predicted that carbon neutrality will have three long-term impacts on the development of energy and related industries: first, carbon neutrality will achieve a cleaner, more economical and safer energy structure in Chinas energy sector. Second, carbon neutral will bring an average annual green economy investment of more than trillion yuan from 2020 to 2060, and an annual output value of about 7 trillion yuan at that time. Third, carbon neutral will promote industrial upgrading and emerging industries. It will not only create new technologies in digital economy such as autonomous driving and energy interconnection, but also bring about the improvement of fuel cell, distributed energy, energy storage and other emerging energy industries. We should vigorously develop green finance, make good use of market mechanism and market institutions, and make joint efforts to achieve the grand goal.