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sammy [17]
3 years ago
10

What has China been doing to help them progressin global trading?

History
1 answer:
choli [55]3 years ago
6 0

Image: Reuters

26 Apr 2018

Sha Song

Specialist, Knowledge Networks and Sustainable Development, World Economic Forum Beijing

 

 

 

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Forum in focus

Accelerating climate action

 

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Explore context

China

 

Explore the latest strategic trends, research and analysis  

After years of heavy industrialization, China’s environmental challenges are nearing a tipping point.

The factories and power plants that have driven its economic growth have also polluted its air, water and soil, to the point where environmental hazards could lead to a significant risk to China’s society and economy, if not corrected in a timely manner. In a bid to tackle these challenges, China’s government has declared a “war on pollution” and introduced a number of green initiatives.

Here are the most important ones:

Less coal, cleaner air

China has taken steps to dismantle coal-fired power plants, reduce overall emission levels and cut particulate-matter emission rates. Huge progress has been made on air quality, and there are now fewer smog days in China’s largest cities.

Better regulation

The former Ministry for Environmental Protection has been transformed into the Ministry of Ecology and Environment (MEE), a new entity with broader, clearer responsibilities. The new ministry will oversee all water-related policies, for example, from ocean resources management to groundwater. Previously, these were scattered among different departments. The ministry is also in charge of policies on climate change.

Funding a greener future

China needs an estimated additional RMB 40.3 trillion ($6.4 trillion) to RMB 123.4 trillion ($19.4 trillion) to finance the transition to a greener economy. It has started collecting an environment tax to help fund its environmental policies, and is also trying to attract more green investment.

China’s Belt and Road Initiative (BRI), a massive global programme aimed at improving inter-connectivity between countries, inspired by the ancient Silk Road, seeks to boost trade and economic growth in Asia and beyond. As Vice Premier Liu He said at the World Economic Forum’s Annual Meeting in Davos this year, reducing pollution is one of China’s main strategic goals as it pursues this initiative, along with preventing major financial risks and alleviating poverty.

         Years of life saved per person Image: Image: China National Environmental Monitoring Center

The BRI will be backed by considerable resources. At maturity, investments in the initiative are expected to hit around $4 trillion, stemming from private sources, dedicated funds, and multilateral development banks. If aligned with sustainable development priorities, these resources have considerable potential to help advance the green agenda.

The next challenge is to improve green investment standards. Recently, China launched the Environmental Risk Management Initiative for China’s Overseas Investment. There is huge potential to “green” the Belt and Road Initiative, if Chinese financial institutions and enterprises improve the environmental risk management of their overseas investments and adopt responsible investment principles. Green bonds are a win-win for investors and developing countries, since they fund the green infrastructure projects that are so urgently needed by many of these countries.

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