The report written by the carbon trust, and accelerating British climate transformation partnership project (UK) PACT China's green financial support of the project.Transformation of accelerating British climate partnership project belongs to the British government's international climate fund, committed to supporting the world cope with and adapt to climate change challenges, to avoid the worst consequences.Accelerating British climate transformation partners plan to support knowledge sharing and capacity building in order to promote the financial sector to accelerate the transformation of net zero carbon economy, this also is in 2021 will be held in the UK the United Nations framework convention on climate change (unfccc) COP26 a key goal of the conference.
Through the risk cost internalization climate transformation, financial institutions can enhance its investment projects to resist the ability of the future risk impact, avoid investment risk assets, choose those destroyed by climate change or stranded for climate change and the smaller probability of assets.This report will promote financial institutions to focus on low climate risk investment projects.Such projects will directly or indirectly, to promote to get rid of the dependence on fossil fuels.
Central Banks and regulators green financial networks (NGFS) and green finance development research center, tsinghua university has launched a climate risk methodology capacity building project, this report is based on the climate transformation of the carbon trust to write for this project risk assessment.Chinese financial institutions by understanding the climate risk more knowledge and share this report to relevant capacity building, can be better to adopt the appropriate methods and tools to assess climate risks, and make the related investment is consistent with the goal of the Paris agreement.
In China's financial market dominant banking is focus on the object of the present report.As China's financial markets remain open and increasing the scale of overseas investment, financial institutions will face tougher international climate related risk assessment and disclosure requirements.
China's banking industry faces many challenges, such as bank interest income to reduce leverage, real estate industry continues to rise, declining household savings, etc., thus, China's Banks are looking for new sources of revenue.Many Banks are considering to provide customers with innovative products, and develop green financial products made Banks also have an opportunity to achieve product diversification.
The carbon trust's general manager Zhao Lijian said.
"The climate transformation of financial institutions risk awareness will produce a chain reaction, will benefit not only is an institution is not only limited to financial markets, because of the financial institutions of the signal can be transmitted to the economy as a whole, it will be able to support China's recently announced ambitious strive to achieve the goal of carbon neutrality, 2060 years ago.The new report is designed to help financial institutions to further understand the risks of climate change, and support financial institutions to choose the appropriate tools to supervise and control the risk.We hope to help financial institutions to further understand the related risks, improve practical ability against risks, creating a more resilient of the international financial system, promote sustainable development."
How to deal with the green swans - power for climate transformation of China's financial markets
The end of the
Editor's note
If you need more information, please contact: carbon trust media office, tel: + 44 (0) 20 7170 7050;Email: press@carbontrust.com.
About the carbon trust
Carbon trust was established in 2001, is dedicated to helping governments, businesses and organizations to reduce carbon emissions, resource efficiency, promote the commercialization of the low carbon business, systems and technology process, so as to accelerate the sustainable development of low-carbon economy, and benefit from it.
The carbon trust:
- To help the government and the enterprise development strategy based on climate science and realize the goal of the Paris agreement.
- Provide expert advice and prove to help investors and financial institutions to build up confidence, convinced that green finance can truly realize environmental targets.
- Support the development of low-carbon technologies and solutions, energy system to lay the foundation for the future.
Carbon trust, based in London, global team has more than 200 members, from five continents over 30 countries.
About the British international climate fund (ICF)
The international climate fund is the British government's commitment to support developing countries cope with climate change.In September 2019 in New York at the UN climate summit in action, Britain announced its international climate finance from 2016 to 2020, 5.8 billion pounds of doubled, to 2021-2025, 11.6 billion pounds.This makes the UK among the leading global provider financial climate.
The fund's main support areas are:
- To establish the most poor people and community resilience
- Sustainable urban construction and transportation systems
- For the global unlock more clean and affordable energy
- Stop deforestation and prevent the irreversible loss of biodiversity
- Since 2011, the fund's investment has helped more than 66 million people to cope with the impact of climate change;To reduce or avoid the 31 million tons of greenhouse gas emissions, and for developing countries to address climate change raised 4.1 billion pounds of public capital and private capital of 2.2 billion pounds
