On December 4th, Professor Haitao YIN, Vice Dean of the Antai College of Economics and Management (ACEM) of Shanghai Jiao Tong University (SJTU), featured in an insightful interview with CGTN. During the discussion, Prof. YIN highlights that China is the first country in the world that installs a systematic framework to finance green development.

Below is the transcript of the interview:

Green finance refers to any structured financial activity to ensure a better environmental outcome. One common green finance instrument is the green bond. China is one of the top issuers of green bonds. Professor Haitao YIN, vice dean from Antai College of Economics and Management of Shanghai Jiao Tong University, says that China is also the first country in the world that installs a systematic framework to finance green development.

Prof. Haitao YIN: As we all know finance is the blood for the entire economy. So, if finance goes green, it will definitely contribute to the development of a sustainable economy. As early as 2016, China published the Guidelines for Establishing the Green Financial System, becoming the first country to install a systematic framework for green finance development. In the past seven years, China has made a huge progress. For instance, by the end of 2022, the green credit balance amounted to 22 trillion Chinese Yuan, an increase of 38.5% from 2021, ranking the No.1 among all countries. By the end of 2022, the issue of bonds has accounted for about 12% of the world’s total. So, the development of green finance has significantly powered the development of many clean technologies, including renewable energy, energy efficiency technology as well as pollution control technologies.

CGTN: Given your expertise, how do you assess the commitments and implementation of developed country funding?

Prof. Haitao YIN: Speaking of the funds from developed countries, I particularly want to talk about the Loss and Damage Fund. The Loss and Damage Fund was a key breakthrough last year at COP27. It will be a big thing again on the table this year. Almost all countries agree that it is a great idea. However, the key issue is the implementation, namely, where the money will come from, and what the structure of payouts will look like. So far, we’ve seen that the UAE and Germany have pledged $100 million each, but where the remaining funds will come from remains unclear.

Another major player, of course, is the U.S. The U.S. administration announced that it would support the creation of such a fund. But, given the Republican control of the House of Representatives, I doubt that the U.S. will make a significant contribution to the fund in the foreseeable future. In sum, I feel that we still have a long way to go to create such a fund, including the Loss and Damage Fund.

CGTN: Allow me to expand on what you just said. The COP28 summit is calling for increased climate finance for developing countries, and also is a scaling up of investment in climate adaptation. What opportunities do you see here?

Prof. Haitao YIN: Well, if we have such a fund, it will bring tremendous opportunities for the technological advancement, especially in clean technology, including wind, solar, energy storage, hydrogen, etc. Of course, it will also bring tremendous opportunities for the commercialization of those clean technologies.

However, following the previous question, I want to emphasize the importance of having a more powerful international community and strengthening the green finance cooperation among all countries. If every country only considers its own benefits and costs, especially taking a very short-term vision, we are going to witness a very typical phenomenon called the Tragedy of the Commons. So, if this happens, we are not going to win the war against climate change, and our planet will be in great danger.

Source:

https://news.cgtn.com/news/2023-12-04/Expert-China-is-the-first-to-install-systematic-green-financing-1pgeKu8mTHG/index.html 

About Prof. Haitao YIN:

https://www.acem.sjtu.edu.cn/en/faculty/yinhaitao.html#container