Category

Green Finance Policy

Category

Green finance can only grow and have its desired positive impact on the climate and biodiversity with the relevant policies. Policies for green finance can be issued, for example, by the Ministries of Finance, the Central Banks, the Financial oversight, the stock exchanges, industry associations, multilateral development banks, private initiatives as well as many other institutions.

Natural ecosystems have declined by 47% compared to their earliest estimated state, 25% of species are already threatened with extinction, the biomass of wild animals has decreased by 82%. The losses to biodiversity and its consequences on both economies and our Earth’s well-being are becoming more evident, while the world is struggling for to develop the post-2020 biodiversity protection framework at the Convention on Biological Diversity (CBD) Conference of the Parties (COP) in Kunming in October 2020. Progress for biodiversity protection is even more difficult than protecting climate. In this article, I propose four axioms, to help move ahead in biodiversity protection in the Belt and Road Initiative and more broadly. Human activities risking biodiversity and pushing the planetary boundaries Biodiveristy is threatened due to a number of human activities, such as construction of infrastructure cutting into natural habitat, use of fertilizers in agriculture and similarly wastewater from human activities…

Green finance in the Belt and Road Initiative (BRI) that deals with climate change by mitigation or adaptation has received much attention over the past months. A topic that is gaining momentum for a “green Belt and Road Initiative” is green finance for biodiversity – or biofin. Three reasons drive this development: China will host the 15th Conference of the Parties (COP 15) to the Convention on Biological Diversity (CBD) next year (tentatively from October 5 to 10, 2020 in Kunming), hoping to agree on a post-2020 framework for biodiversity conservationBiodiversity losses continue to accelerate with currently 1 million of 8 million known species under immediate threat Chinese Investments in the Belt and Road Initiative have a major impact on biodiversity loss and biodiversity protection Although biodiversity protection has a long history (the first CDB COP took place at the end of 1994 in the Bahamas), progress on biodiversity protection has been…

While green bonds remain the most mature instruments, a wide range of innovative financial solutions are rapidly developing. Issuing green bonds, i.e. bonds whose proceeds are earmarked for funding climate and environmental-friendly projects, is an effective and increasingly popular way to achieve this end. In just over a decade, annual green bond issuance grew over 100 times in terms of total value: from USD 1.5 billion in 2007, to USD 167 billion in 2018. Increasingly, bond issuers in Asia are picking up the practice: whereas China had still not issued a single green bond in 2015, in 2016 it accounted for 40.9% of global green bond issuance (followed by 24.6 % in 2017 and 23.0% in 2018 ).[1] Furthermore, India financed part of its 2022 renewable energy targets through the issuance of green bonds by public institutions and corporations (Source).[2] Additionally, whereas ASEAN’s green bond issuance was USD 2.3 billion…

Editorial Note The Belt and Road Initiative (BRI), since its initiation and implementation, has brought new opportunities for global economic development, particularly sustainable economic development of BRI countries. As of 18 April 2019, new progress had been made under the BRI in terms of policy coordination, infrastructure building, unimpeded trade, financial integration and people-to-people exchanges with China signing 174 intergovernmental cooperation documents with more than 150 countries and international organizations. On the flipside, however, BRI investments face increasingly complex risks, including political and regulatory risks, legal and regulatory risks, construction risks, and environmental and social risks. This article aims to raise suggestions on mainstreaming environmental, social and governance (ESG) investments in the BRI through an objective analysis. Implementing the concept of ESG investments On 29 January 2019, the Chinese Ministry of Commerce officially published the Guidelines for Country-by-Country (Region-by-Region) Foreign Investment and Cooperation (2018 Version). The Guidelines introduce the basic…

On the surface, the global community agrees: We need sustainable development – for the benefit of all. However, in practice, the devil lies in the details – and in different priorities of nations and organizations in trying to achieve the triple bottom line: economic growth, social development, and ecological protection. Over the last 2 weeks, I was invited to contribute to three conferences in China on financing sustainable innovation. During these conferences, I experienced once again how Chinese and European colleagues agree on the surface about the need for sustainable development, but not in practice on the actions to take. These differences reflect the divergent needs and views of different nations, as well as the complexity of sustainability across the world. But with billions (RMB, EUR, USD, Yen,…) invested in the name of sustainable development, for example in the Chinese Belt and Road Initiative (BRI), I believe that these differences…

Editorial Note: Good health and well-being, as one of the sustainable development goals set by the United Nations, is one of the key focus areas for future development. In this regard, China should deepen and widen the scope of international cooperation in healthcare industry, taking the Belt and Road Initiative (BRI) as an opportunity. In 10 April 2018, a roundtable named “The Belt & Road Initiative: Healthcare” was held at the Boao Forum for Asia Annual Conference 2018. It aimed at building an ecological platform for the whole industry chain in the healthcare industry, as well as providing opportunities for the development and transformation, industrial cooperation among BRI countries in the healthcare industry. Through this roundtable, the BRI was for the first time linked with the healthcare industry at the national level in China. From then on, a discussion has emerged on how China’s healthcare industry can participate in the…

Leading up to the 2nd Belt and Road Forum from April 24-26 in Beijing, various working groups, think tanks and government agencies published accounts of the past achievements and challenges of the Belt and Road Initiative (BRI). One of these accounts was given by the Advisory Council of the Belt and Road Forum for International Cooperation (the BRF Advisory Council) in their report “Belt and Road Cooperation: For a Better World”. This article analyzes on the report’s suggestions in regards to green finance and explains some possible backgrounds of the suggestions. This should help to improve the understanding of challenges and thus the successful acceleration of the Belt and Road Initiative. Background and Overview of BRI improvement suggestions by the BRF Advisory Council Since the announcement of the Belt and Road Initiative in 2013, more than 100 countries have signed instruments of cooperation with China to promote the Belt and…