——A Case Study in Ordos and Holingol, Inner Mongolia
At the end of 2022, the closing review meeting of the project Financial Support for Low-Carbon Transition of the Coal Industry in Chinese Coal-Dependent Cities——A Case Study in Ordos and Holingol, Inner Mongolia was successfully convened. This project was carried out by the International Institute of Green Finance, Central University of Finance and Economics and commissioned by the Energy Foundation.
Julia MAO, the International Cooperation Department Director of IIGF, chaired the conference. WANG Yao, the Director General of IIGF, and Chen Lingyan, the Program Officer of the Low Carbon Economic Development Program at the Energy Foundation, delivered opening remarks.
Professor WANG Yao explained the significance of the research and introduced the overall progress of the project. She pointed out that the project delivered recommendations on financial support for the transformation of the coal industry in coal-dependent cities. Ms. Chen Lingyan described the project background, pointed out the pressing needs of transition for high-carbon industry under the carbon peaking and carbon neutrality goals. Ms. Chen Lingyan insisted that the project research results were of great significance to the transformation of energy-dependent cities.
REN Yujie, the Director of Green Finance at the IIGF, reported the project results. This project analyzed the transition pathways for the coal industry in Ordos and Holingol and further investigated the financial needs of transition , and current challenges. Based on the best practices from the successful transformations of other coal-dependent regions, project provided substantial recommendations for financial support of the transition of the coal industry. According to historical data, economic theory and mathematical model, the research group simulated the transition roadmap of primary energy system and proposed the detailed pathways of the coal industry in Ordos and Holingol, divided in three stages: orderly peak, rapid reduction and reaching neutrality by combining the“carbon peak and neutrality targets”with the industrial foundations of the case cities. Based on the marginal theory, the total cost of transition during the 14th Five-Year Plan period was estimated, and the structure of financial system needed to support the transition was predicted based on the technology maturity and market expectation. Through the combination of qualitative and quantitative methods, the project has built a solid foundation for designing targeted financial support strategy with regional characteristics and practical significance.
Several experts from government, financial institutions and academic institutions evaluated the project results:
- Yin Hong, Vice President of the Modern Finance Research Institute of Industrial and Commercial Bank of China, Dong Yu,
- Executive Vice President of the China Development and Planning Institute of Tsinghua University and member of the Planning Expert Committee of Inner Mongolia Autonomous Region,
- Tian Zhiyu, Director of the Sustainable Center of the Energy Research Institute of the National Development and Reform Commission,
- Wang Ke, Associate Professor of the School of Environment of Renmin University of China,
- Cheng Lin, Director of the Green Finance International Cooperation and Research Center of Beijing Green Finance and Sustainable Development Research
The experts gave full recognition to the project results, and provided valuable advice on improving the report and carrying out continuous follow-up research. Professor WANG Yao expect that this report will serve as a reference for policy making in the region and development of necessary financial solutions.