{"id":11546,"date":"2023-01-10T07:30:01","date_gmt":"2023-01-10T07:30:01","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=11546"},"modified":"2025-04-23T09:34:24","modified_gmt":"2025-04-23T09:34:24","slug":"how-are-the-uk-and-china-collaborating-in-green-finance","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/how-are-the-uk-and-china-collaborating-in-green-finance\/","title":{"rendered":"Explained: China & the UK’s green finance initiatives"},"content":{"rendered":"

The UK finance sector is well positioned to take advantage of the surge in activity around models of green finance in China, and its use as an enabler of green growth<\/h2>\n

The news that the UK saw its warmest year on record in 2022 \u2013 and the prediction that this year could be even hotter \u2013 is yet another reminder of the urgent need to enable a low-carbon future. One of the many ways that this can be achieved is by pushing green finance into the mainstream.<\/p>\n

2021 saw China become the world\u2019s second-largest green bond market according to HSBC (issuing over RMB 600 billion of green bonds, a 180% increase on 2020), as the country rolled out funding to support the vast array of clean and renewable infrastructural projects that will be required to meet its ambitious net zero targets. The UK financial sector, for its part, has played a world-leading role in developing such instruments from their inception, and is well-placed to work together with Chinese partners in pursuing common goals.<\/p>\n

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Green finance can be defined as financial regulations, standards, products or investments that pursue environmental goals, including climate change adaptation and mitigation, and biodiversity. Over the past decade, the UK and China have established strong partnerships in the field of green finance, becoming world leaders in responding to the transition to a green economy. In a speech in London at City Week 2022 last April, Chinese Ambassador Zheng Zeguang spoke of the \u201cbroad space for China-UK cooperation on green development\u201d and noted that a March 2022 conversation between President Xi Jinping and then Prime Minister Boris Johnson had highlighted cooperation in green financial services and the digital economy.<\/p>\n

The UK-China Green Finance Centre, co-established by the City of London and the Green Finance Committee of the China Society for Finance and Banking, has spearheaded UK-China collaboration in green finance, and continues to serve as a key platform for leading industry and policy experts to develop market-led solutions to help scale up green finance in both countries \u2013 as well as globally.<\/p>\n