Green finance highlighted in advancing BRI: CIFTIS forum
BEIJING, Sept. 7 (Gwadar Pro) - “China is becoming a ‘new server’ in the web of global markets, offering new wisdom and solutions for the future of the world,” affirmed delegates addressing the 2021 International Forum on Financial Innovation and Cooperation on September 4. Participants also acknowledged the economic contribution of China's green financial services to countries along Belt and Road Initiative (BRI).
Themed “Innovating Financial Services and Boosting Economic and Trade Development”, guests hold discussions on hot issues such as green finance, supply chain finance, fintech innovation and trade deficit in services, aiming at providing ideas for the promotion of high-quality development of BRI.
Green finance is growing particularly fast in China. Back in 1995, “Notice on Credit Policy for Environmental Protection” was issued by the People’s Bank of China (PBOC). In 2007, the Banking Regulator CRBC released the “Green Credit Guideline”. In 2016,“Guidelines for Establishing the Green Financial System” were published with endorsement by China’s State Council. Also, China made green finance one of the major topics at the 2016 G20 summit in Hangzhou.
According to a report of Green Belt and Road Initiative Center, renewable energy investments (solar, wind, hydro) constitute the majority of China’s overseas energy investments – increasing their share from 38% in 2019 to 57% in 2020 – amid a total decrease of BRI investments of 54%.
For example, Pakistan received the most energy investments from China from 2013 to 2020, followed by the Russian Federation and Indonesia. Pakistan is the largest recipient of coal-related investments and also the largest recipient of investments in hydropower. Overall, Pakistan attracted more than 50% of renewable energy investments (47% of which were in hydropower), said the report.
Wang Yaping, Director-General of Accounting Society For Foreign Economic Relations & Trade of China (ASFETC) and researcher of Center for International Strategic Studies of the Counsellors’ Office of the State Council of China, noted that China's financial reform is bound to enter a new stage of development, and the world economy will also get new development opportunities in the post-pandemic era as China is promoting a dual-cycle development pattern relying on both domestic and international economic cycles, with the domestic cycle being the mainstay.
Wang hopes that the forum will explore innovative financial services to better serve national development and international economic and trade cooperation.
Co-hosted by ASFETC, Beijing Leading Group Office for Development of “Two Zones”, China-Europe Association for Technical and Economic Cooperation, China and Chengtong International Investment Co., LTD. (Russia-China General Chamber of Commerce), the forum is held under the 2021 China International Fair for Trade in Services (CIFTIS).
The 2021 CIFTIS kicked off on September 2 in Beijing, highlighting China's new pledges to open the country's service sector wider and enhance global cooperation for further economic recovery.