An industry body dedicated to promoting climate change investing within Asia’s funds industry has launched a working group for the Chinese market.
The Asia Investor Group on Climate Change (AIGCC) has made the move due to growing interest from investors focused on Chinese companies.
China has set dual targets around carbon use, including reaching peak carbon use by 2030 and carbon neutrality by 2060 – targets which will require significant levels of capital.
According to Qimin Chai, director of the strategic planning, national centre for climate change strategy and international cooperation from China’s Ministry of Ecology and Environment: “Top achieve China’s 2060 carbon neutrality goal, over RMB139 trillion (US$21 trillion) of investment will be needed, with a long-term funding gap of $232 billion per year.”
There are also a number of major policies that have been launched in China, including the China Emissions Trading System and the China-EU Common Ground Taxonomy-Climate Change Mitigation, all of which have contributed to the urgency among investors on sustainable finance.
“The common goals of markets towards carbon neutrality and differentiated responsibilities in the transition calls for accelerated efforts in the region,” said Valerie Kwan, director, engagement at the AIGCC.
“Through the China Working Group, we are keen to foster an environment for conversations amongst investors with an interest in the developments of climate policy in China and are looking to deepen their engagement in the market.”
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