Climate Finance Research
Climate Finance Research Center focuses on the analysis of climate investment and financing policies. The Climate Finance Research Center regularly provides policy recommendations to relevant ministries and as well as local governments. The Team drafts the annual China Climate Financing Report and conducts follow-up research and analysis on environmental equity markets such as the carbon market.
Research outputs:
IIGF View | Exploring the improvement of the forestry carbon offsets in China
With planned expansion of the national carbon trading scheme and Beijing set to relaunch the CCER scheme in 2022, the significance of CCER will further increase. In this article we analyze the current status of the forestry carbon sink, the potential for development of afforestation projects in China and potential bottlenecks.
IIGF View | International Experiences of Fiscal and Tax Policies in Response to Climate Change and their Potential Lessons for China
Fiscal and tax policies are key parts of addressing climate change. The IMF believes that finance ministers around the world can play a central role in tackling climate change, promoting investment in mitigation and adaptation, creating more jobs in these sectors of the economy and promoting high-quality sustainable economic development. At present, countries usually formulate fiscal and tax policies to deal with climate change from the angles of fiscal expenditure and revenue while promoting low-carbon transformation and enhancing the ability to adapt to climate change through a variety of policy means and combinations.
Analysis of China’s “Action Plan for Carbon Dioxide Peaking Before 2030”
On October 26, the State Council issued the ” Action Plan for Carbon Dioxide Peaking Before 2030″, one of the most important “n” in the new strategic“1+n” climate policy package. The document outlines a comprehensive plan for China’s carbon peaking action in the next ten years. In this article, Liu Huixin, Research Fellow of the Climate Finance Research Center at IIGF analyzes the policy in detail, and provides recommendations for a successful implementation in China.
Accelerating Climate-Resilient Infrastructure Investment in China
To better support China’s climate adaptation work, in November 2020, World Resources Institute (WRI) initiated a research project focused on climate adaptation and acceleration of climate-resilient infrastructure investment in China. International Institute of Green Finance (IIGF) and National Center for Climate Change Strategy and International Cooperation (NCSC) supported the project and provided relevant expertise on the topic.
This report systematically defines and analyzes climate risks and the corresponding climate-resilient infrastructure (CRI) in China. Building on three case studies, it evaluates future agricultural drought risks, urban waterlogging, and coastal storm surges faced respectively, in three locations Ningxia, Wuhan, and Shenzhen—and discusses in-depth the necessity of promoting CRI.
Rethinking Carbon Neutrality: The Role of Transition Finance
China’s decarbonization process is still at an early stage compared with developed countries. Its social and economic development still largely rely on energy-intensive industries and achieving green growth will require more efforts. Especially some traditional carbon-intensive industries face many challanges in the process of green transformation and upgrading. This article analyzes how the application of transition finance can support the heavy emitters to become greener.
Analysis of the Regional ETS Harmonization Potential of China and Southeast Asian Countries
China’s national ETS is expected to be officially launched in 2021, while Vietnam recently adopted a revised law and created a mandate for ETS implementation; Indonesia and Thailand are still discussing and drafting ETS legislation, while ETS development in the Philippines needs further acceleration. The study finds several important parallels, but also relevant divergence in ETS developments in these jurisdictions, making future harmonisation challenging.
Guiding Opinions on Promoting the Investment and Financing in Response to Climate Change–Highlights
On October 26, 2020, five ministries jointly issued the Guiding Opinions on Promoting the Investment and Financing in Response to Climate Change. For the first time, climate investment and financing have been put on the national-level policy agenda.
Annual Summary of China’s Carbon Market in 2020 and Policy Recommendations
Carbon trading is one of the most cost-effective market emission reduction tools and plays a vital role in China’s response to climate change and the realization of the 2030 and 2060 carbon pledges. This article summarizes and analyzes the development of China’s carbon market in 2020 and provides suggestions for the future progress of the national carbon market.