Workshop on Low Carbon Finance

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Workshop on Low Carbon Finance

Supporting Hubei’s Low Carbon Urbanisation and Industrialisation

Bild Sino-European Partnership on Low Carbon and Sustainable Urban Development

Wuhan, November 5, 2014 | Due to the intensive industrialisation and urbanisation processes, Hubei provincial government faces a daunting task in decarbonising its industries and cities. In particular, many of its industries are either not ready or struggling to play an active part in its emission trading scheme (ETS) due to cost implications. Hubei government also faces huge challenges in financing the low carbon transformation needed: Wuhan currently has one of the highest local government debts in China and needs to spend $329 billion in urban construction over the next five years. 

Filling low carbon financing gap is not unique to Hubei – China’s overall low carbon investment gap could be as high as $370 billion in 2030. Progress in fulfilling low carbon financing needs is slow because it requires investors to shift resources away from traditional financing towards newer, less familiar business models. In most cases, it also requires significant amount of upfront capital. However, there are some best practices and innovation in relation to China’s Green Credit Guidelines and green investment under the Ministry of Environment Protection that provide a good basis for innovative low carbon finance going forward. China’s financial reform currently underway will be instrumental as it creates the space to experiment with innovative financing measures to mobilise resources.  

As part of the Sino-European Partnership on Low Carbon and Sustainable Urban Development project, E3G has collaborated with Hubei Carbon Emission Trading Centre Co Ltd to jointly organise a workshop on financing Hubei’s low carbon pathway. 

The objective of the workshop is to share information and lessons about the latest development in low carbon finance in China, Europe and worldwide to support decarbonisation effort in Hubei, in particular the role of finance in integrating cleaner and low carbon investment choices across its economy.
Experts and participants of the workshops include national and international experts on low carbon finance, innovative finance and ETS, including commercial banks, financial institutions, development agencies and think-tanks/universities. They also include Hubei Development and Reform Commission (DRC) and local governments.