Green finance is essential to promote green development of the Belt and Road Initiative

2019-08-08

       

On August 8, 2019 the Greening Belt and Road Project published a report -“Study on Promoting Belt and Road Green Finance Policy”.The report emphasizes green Belt and Road development and analyzes global green finance practices and their effects. It puts forth a series of targeted policy recommendations for countries along the Belt and Road, emphasizing international cooperation and helping financial institutions to promote green BRI development. Experts from the Bank of China and other institutions commented on the report. 

The report shows that the governments of each country, international organizations, and financial institutions have accumulated a great deal of experience in green finance in the past, which can provide a reference for the building of a green Belt and Road. First, international organizations can advance global sustainable development by promoting the concept of green finance, promoting international environmental cooperation, taking the lead to formulate green finance standards and helping developing countries build capacity. Second, the governments of each country can encourage domestic green finance development and realize sustainable transformation by strengthening legislation and establishing an incentive mechanism. The Chinese government’s experience, including building a systematic regulatory system, developing green finance markets and establishing a combined “top-down” and “bottom-up” green finance system, is worth drawing upon as an example for countries along the Belt and Road. Finally, financial institutions are important practitioners of green finance and a major driving force for global sustainable development. Policy banks, commercial banks, funds, insurers and carbon exchanges have accumulated a wealth of valuable experience. Among them, ICBC has developed environmental risk stress testing, an ESG index and other quantitative tools for environmental risks, which can provide a reference for green Belt and Road development.

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