“I am delighted to join today’s conference, where policy makers, regulators, financial institutions and third-party organisations share their views on climate change and transition finance. At Standard Chartered, our unique presence in the developing markets of Asia Pacific, the Middle East and Africa compels us to engage in the transition while supporting economic development in these regions. This is no small challenge. And we look forward to collaborating with industry leaders, including Climate Bonds, to enhance the role of bonds and other financial instruments in China's green transition.”
Jean Lu, Head of CCIB & Deputy CEO, Standard Chartered Bank China
Climate Bonds CONNECT 2024 Shanghai focused on the topic of transition — how industries and economies can align themselves with net zero pathways and realize a green future. While the Chinese green bond market has surged over the past decade, understanding of transition finance is still developing in China and around the world.
One opportunity for the Chinese economy to hasten its transition to net zero can be found in the country’s steel sector. China is the largest producer of steel worldwide, and 34% of steel in China is purchased by the government. That provides a remarkable opportunity for green public procurement and large scale investment in greener methods of steel production.
Hear more about how the Chinese market is developing its transition programmes and aligning with a net zero future in the latest Climate Bonds Café, featuring Standard Chartered Bank’s Tracy Wong-Harris and Climate Bonds’ CEO Sean Kidney.
Landscape of Sustainable Finance Regulation in Asia
In the day’s first session, Landscape of the Sustainable Finance Regulation in Asia: Regulation for Financial Stability and the Taxonomy Development in the Face of Climate Change. Sean Kidney, CEO guided the panel as they discussed insights into Asia's sustainable finance landscape.
Dr. Ma Jun, Director of Green Finance Committee of the China Society for Finance & Banking, Chairman and President of the Hong Kong Green Finance Association (HKGFA), and Co-Chairman of the IPSF Common Ground Taxonomy Working Group, emphasised the importance of green definition and preventing "greenwashing." More than 75 countries and regions around the world, including China, have participated in developing taxonomy, and Climate Bonds has also contributed to this process. In the next step, the focus will be on how to improve the interoperability of taxonomies among countries and regions. The development and application of the EU-China Common Taxonomy is an excellent example.
Satoshi Ikeda, Chief Sustainable Finance Officer and Counsellor for International Affairs at the Financial Services Agency of Japan, shared Japan's experience in transition finance and setting a net-zero pathway for high-carbon emission sectors, and also mentioned the world's first sovereign climate transition bond issued in February.
Cho Hoi Hui, Head of Banking Policy at Hong Kong Monetary Authority (HKMA), provided valuable insights for the latest work on the Hong Kong Sustainable Finance Taxonomy. Li Jin, Deputy General Manager of the Shanghai Environment and Energy Exchange, shared the latest progress on climate investment and financing and transition finance in Shanghai and Pudong New District of Shanghai.
The State of the Climate Finance Market in Asia
The day’s second panel focused on the state of the existing climate finance market in Asia and the role of institutional investors in the green transition. Raymond Zhang, CEO of SynTao Green Finance, led an engaging discussion on the state of the climate finance market in Asia, emphasising the crucial role of institutional investors in China's green transition.
Yuki Yasui, Regional Director at Glasgow Financial Alliance for Net Zero (GFANZ), highlighted key trends in Asia's climate finance sector, while Sylvia Chen, Head of ESG at Amundi, shared insights on sustainable investments in South Asia.
Phoebe Zhao, Co-Secretary-General, China Climate Engagement Initiative, shared her perspectives, adding depth to the discourse on climate engagement in China. Additionally, Jason Tu, Founder and CEO of MioTech, delivered expert insights on market players role, "In addition to regulatory and investor factors, market factors are fast becoming important drivers of the climate transition, and over the past two years, companies that have been deeply involved in the climate transition are reaping the positive benefits of these initiatives, especially better earnings and stock price performance”
Transition Finance and the Role of Transition Plans
You can catch the full recording here
