Watchdog seeks to attract financing for climate sector

China’s top environmental watchdog has pledged to draft preferential policies and proactively roll out pilot programs on investment and finance to attract more funding for the climate sector.

The announcement came on Tuesday as the watchdog launched a think tank on the issue.

The institute, Climate Investment and Finance Association, was cofounded by five central government bodies, including the Ministry of Ecology and Environment, the People’s Bank of China and the National Development and Reform Commission.

The association aims to conduct theoretical and scientific research on investment and finance in the climate sector and offer support for the decision-making of finance authorities and financial regulators. It will also promote international cooperation in the sector, said Li Gao, director general of climate change and also head of the association.

China has seen marked achievements in tackling climate change. While carbon dioxide emissions per unit of GDP in 2018 were 45.8 percent below the 2005 level, the share of non-fossil fuels in the country’s primary energy consumption had increased to 14.3 percent, he said at the China Climate Investment and Finance International Workshop.

“China, however, is still the largest developing country with the outstanding problem of unbalanced and inadequate development,” Li said. “It is facing a series of difficulties and challenges in developing its economy, improving people’s livelihoods, eradicating poverty and controlling pollution.

“China still has to continue to make arduous efforts to realize its Nationally Determined Contribution (or the post-2020 climate action target) by directing and promoting more funds to invest into climate mitigation and adaptation. The efforts cannot succeed without the support of climate investment and finance.”