CICC Global Institute and BRIGC Hold Belt and Road Forum on Green Finance and Low-carbon Development
Under the guidance of the Ministry of Ecology and Environment, the Global Institute (CGI) of China International Capital Corporation Limited (CICC, 3908.HK, 601995.SH) and the BRI International Green Development Coalition (BRIGC) co-hosted on May 25 the Belt and Road Forum on Green Finance and Low-carbon Development in Beijing. Senior government officials and prominent domestic and overseas scholars attended the Forum and held in-depth discussions about the green, sustainable recovery from the aftermath of the COVID-19 pandemic. CICC Global Institute issued at the Forum its White Paper on BRI Research in 2021, while BRIGC rolled out its Green BRI and 2030 Agenda for Sustainable Development. Almost 200 representatives from government departments, international organizations, financial institutions, research institutions and thinktanks participated in the Forum.
Shen Rujun, Chairman of CICC, extended his gratitude to the guests and highlighted his expectation for the Forum to serve as a platform for the sharing of insights into and in-depth discussions about the prospect and pathways of creating synergies between green finance and low-carbon development.
Mr. Shen believes that such discussions will produce valuable suggestions and proposals for the high-quality development of the Belt and Road Initiative (BRI) in a changed world, underpinning solid, steady and substantial progress in the construction of the green Silk Road. The Chairman said that CICC is keen to collaborate with all relevant parties to support green and low-carbon development of the BRI, as the company has been committed, since inception, to providing services and support for China’s economic system reform and capital market development.
Zhao Yingmin, Vice Minister of the Ministry of Ecology and Environment and Convener of the BRIGC Advisory Committee, stressed in his speech that the transition to a green, low-carbon development pattern will be the “only way” to achieve sustainable development and the “optimal solution” to facilitate a green recovery of the world economy from the aftermath of the pandemic.
The Vice Minister emphasized that China unswervingly follows a green, low-carbon and high-quality development path that prioritizes ecological conservation, and the country has been working diligently to fulfil its responsibilities in the international community. The joint efforts of China and relevant parties to build a green Silk Road are based on and aligned with the world’s objective for sustainable development. The Vice Minister stressed China’s determination to contribute its wisdom and strengths to global development, and expressed his high hopes for progresses in the construction of a green BRI based on closer green partnerships, substantial cooperation achievements, and effective implementation of green investment concepts.
Prominent Domestic and Overseas Guests Sharing Insights into Green Silk Road
Keynote speakers at the Forum include Jin Liqun (President of Asian Infrastructure Investment Bank), Su Wei (Deputy Secretary-General of the National Development and Reform Commission), Andrew Steer (BRIGC Co-Chair, President and CEO of the Bezos Earth Fund), and Guo Jing (Director General of the Department of International Cooperation at the Ministry of Ecology and Environment). The speakers provided comprehensive analysis of the green Silk Road’s prospect and development paths from a wide range of perspectives, such as construction of a green financial system for the BRI, investment and industrial cooperation under the BRI, as well as international collaboration on green development.
Other speakers at the Forum include Hazri Hassan (Director of the International Policy Division of the Ministry of Sustainability and the Environment of Singapore), Kate Hampton (CEO of Children’s Investment Fund Foundation), and Sun Zhuangzhi (Director-General of the Institute of Russian, Eastern European and Central Asian Studies of the Chinese Academy of Social Sciences). These speakers shared with us their insights and unique views on a variety of hot topics about the green Silk Road, such as green energy, green infrastructure and green finance.
CGI and BRIGC jointly launched at the Forum an initiative for thinktank cooperation on green Silk Road research. The initiative calls for research collaboration, development of communication platforms, and applications of research findings. Participants in the initiative include the Silk-Road Planning Research Centre and the BRI Research Institute of the China Center for International Economic Exchanges.
The event also featured two thematic sub-forums: “Green Silk Road and Low-Carbon Development”, and “Green Silk Road and Green Finance”. Domestic and overseas experts exchanged views and had in-depth discussions on relevant topics in both sub-forums.
CICC Issues the 2021 Edition of its Annual White Paper on BRI Research
Wu Huimin, Managing Director of CGI and Head of CGI BRI Research Center, stressed that CICC, as an investment bank with Chinese roots and international reach, has been committed to supporting and facilitating the implementation and advancement of the BRI. CICC rolled out at the Forum the 2021 edition of its White Paper on BRI Research, an annual publication that the company has been issuing for four consecutive years since 2018. The White Paper consists of four parts: Macro Perspective, Micro Investigation, Thematic Research and Country Observation, all of which are based on principles of openness, inclusiveness, cooperation and development.
Wu Huimin pointed out that countries participating in the BRI collectively account for about 30% of the world’s total carbon emissions, and their carbon emissions may continue to rise along with industrialization and urbanization. In the context of the global endeavor to reach carbon neutrality, development of a green Silk Road is of vital significance to BRI-participating countries and the whole world. Based on BRI-participating countries’ latest targets on Nationally Determined Contributions (NDCs) and data on investment, electricity generation and installed capacity, CICC Global Institute’s bottom-up assessment indicates that the total amount of green investment in these countries may reach US$5.7 trillion over the next 10 years, of which US$2.5 trillion may be invested in renewable energies. Looking ahead, we believe that construction of the green Silk Road should focus on two key issues: 1) Formulation of a systematic program to align objectives of the green Silk Road with China’s targets for carbon emissions peak, carbon neutrality and development of the “ecological civilization”; 2) Alignment of BRI project cooperation and construction with the NDCs of BRI-participating countries, so as to better support the green and low-carbon development of the BRI.
BRIGC Issues the Green BRI and 2030 Agenda for Sustainable Development
Zhou Guomei, Deputy Secretary-General of BRIGC and Director-General of the Foreign Environmental Cooperation Center of the Ministry of Ecology and Environment, highlighted that efforts to build the green Silk Road are consistent with the prevailing trend of green and low-carbon development emphasized by the international community. The Deputy Secretary-General stressed that construction of the green Silk Road will help meet the demand for sustainable economic and social development in BRI-participating countries, and is highly consistent with and mutually complementary to the concepts, principles, and goals of the 2030 Agenda for Sustainable Development. Since 2018, BRIGC has been working on a series of studies on the “Green Belt and Road Initiative and the 2030 Agenda for Sustainable Development”, which proposed clear principles, targets and roadmaps for BRI green development. The studies also focus on key issues such as biodiversity conservation, green investment and green finance so as to translate concepts of green BRI development into concrete actions.
The Deputy Secretary-General noted the growing international consensus on green BRI development, the improving platform for policy dialogues, as well as the increasing capabilities for decision-making and risk prevention in ecological and environmental protection since 2013. Going forward, green investment and financing should fully play their critical roles to support and ensure green development of the BRI. Information-based tools should be developed for the screening and assessment of environmental risks in BRI investment projects. It is also important to facilitate the mainstreaming of key environmental considerations throughout entire project life cycles, including response to climate change, environmental protection, and biodiversity conservation.