| On December 15, 2021, the International Institute of Green Finance (IIGF) of the Central University of Finance and Economics (CUFE) held a mid-term seminar on “Green Finance and Transition Finance in Support of Low-Carbon Transition of Coal Industry in China’s coal-dependent Cities – A Case Study of Erdos and Holingol, Inner Mongolia.” The seminar was held online and invited professionals, practitioners, and experts from the Strategic Planning Department of the National Center for Climate Change Strategy and International Cooperation (NCSC), the Energy Research Institute of National Development and Reform Commission (NDRC), National Energy Conservation Center, Modern Finance Research Institute of Industrial and Commercial Bank of China (ICBC), Finance Office of the People’s Government of Erdos, China Coal Finance Co. Ltd., the Government of Inner Mongolia Autonomous Region, the Strategy and Planning Research Center of Pioneer College of Inner Mongolia University, and the Research Center for International Cooperation of Beijing Institute of Finance and Sustainability. The panel of experts conducted in-depth discussions about the research topic and project report from their professional perspectives and provided suggestions for the future project development. Julia Qian Mao, Director of the International Cooperation Department of IIGF, moderated the seminar. Xu Hongfeng, Deputy Director-General of the IIGF and the project leader, reported on the progress and results of the project. Chen Lingyan, Director of the Low-Carbon Transition Program of Energy Foundation, delivered the opening speech. Director Chen emphasized the urgency of energy transition and related industries’ transition, pointed out the vital importance of green finance in the energy transition. The research emphasizes the key role of green finance and transition finance in this process. The project focuses on the low-carbon transition in two cities with high coal dependency — Erdos and Holingol and proposes five key directions for green finance and transition finance to support the low-carbon transition in Inner Mongolia. It is expected that the transition studies of these two cities can be an inspiration and reference for related work in China and internationally. During the discussion, Chai Qimin, Director of the Strategic Planning Department of NCSC, pointed out that transition paths in practice are not necessarily clear-cut but often originate from a combination of multiple strategies. Director Chai also analyzed the specificity of transition finance and the regional industry of Inner Mongolia. Tian Zhiyu, Deputy Director of Energy Efficiency Center of the Energy Research Institute of NDRC, shared thoughts on the overall situation of China’s low-carbon development and Inner Mongolia’s position in national energy. Xin Sheng, Deputy Director of the National Energy Efficiency Center, pointed out that the differentiated analysis of financial instruments in conjunction with relevant industrial applications are significant to practical implications of the subsequent research. Yin Hong, Vice President of Modern Finance Research Institute of ICBC, made detailed recommendations from the perspective of financial institutions. Vice President Yin said that coal produced in Inner Mongolia had contributed to the energy security of the whole country, so the analysis needs to be done from a national perspective. Yuan Xinhua, Director of Finance Office of the People’s Government of Erdos, commented from the local perspective, emphasizing that Inner Mongolia’s transition needs the support of the whole country and the central government. Liu Junguang, Deputy General Manager of China Coal Finance Co. Ltd., shared opinions on the direction and pace of transition and the role of coal in energy security. Hang Shuanzhu, Counselor of the Government of Inner Mongolia Autonomous Region and Director of the Strategy and Planning Research Center of Pioneer College of Inner Mongolia University, emphasized that the transition of energy economy shouldn’t only come down to the product level, but must include the macro aspects such as the industry chain and the whole economic system. Cheng Lin, Director of the Research Center for International Cooperation of Beijing Institute of Finance and Sustainability, pointed out that the coal transition needs to be analyzed in the short, medium and long term in the context of the general national policy. Regional work and transition processes may not necessarily be fully synchronized with the national process, and they can develop independently. In addition, Director Cheng pointed out that foreign cases have historical and national characteristics but might not be consistent with China’s urgent transition needs today. Therefore, it is also necessary to keep in mind the differences between foreign cases and Chinese national conditions. Fu Sha, Program Director of the Strategy and Planning section of Energy Foundation China, summarized the experts’ opinions and provided insights on the topic of transition direction. The mid-term progress of the research project met with positive feedback from the experts participating in the seminar. The research results are important for formulating local and national coal transition policy and the development of relevant financial instruments. |