In September 2020, China announced that it would aim to reach a peak in its carbon dioxide (CO2) emissions before 2030 and achieve carbon neutrality by 2060. Over the past decade, China has remained the world’s biggest producer and consumer of energy, while its energy-related CO2 emissions had grown to account for 28% of the global total preceding the COVID-19 pandemic.
Read More
To achieve its ambitious carbon peak and carbon neutrality goals, China needs to close an annual funding gap of about RMB1.1 trillion ($170 billion). It can only do so if it manages to develop far more sophisticated green financing schemes. In China, bank lending is the backbone of corporate finance. Due to their risk-averse nature, banks tend to target large state-owned and private enterprises, meaning SMEs (small, medium enterprises) miss out on the funding — despite accounting for 65% of the country’s CO2 emissions.
Read More