Standard Chartered Wintos: China'S "3060" Commitment Is A Major Progress In Global Response To Climate Change

At the 2021 annual meeting of China development high level forum held recently, Wen Tuosi, CEO of Standard Chartered group, delivered a speech at the sub forum of "promoting comprehensive green transformation of economy and society".

Wentos said China's commitment to "2030 carbon peak, 2060 carbon neutral" marks a major progress in the global response to climate change. He also highly agrees with the green financial policy framework system established by the people's Bank of China and relevant government departments. He believes that green financial standards, environmental information disclosure, policy incentive mechanism, product innovation system and international cooperation are the five key pillars of the system, which are essential to guide, encourage and reward companies to transition to a low-carbon economy.

"We will focus on supporting the green belt and road initiative. In 2020, we have participated in more than 120 belt and road projects with a total value of more than $20 billion, of which more than 36% meet the sustainable development goals set by the United Nations, such as clean / renewable energy, waste treatment and water resources projects. " Mr Wen said.

Wintos is also chairman of the International Finance Association Working Group on expanding voluntary carbon markets and co chair the B20 Action Committee on sustainable development and global emergency. "The working group also includes several institutions from China, with the aim of establishing and expanding the private sector voluntary carbon market to help enterprises make the transition to net zero emissions," he said. We are looking forward to contributing to the development of China's carbon emission trading market. "

It is a great honor to attend this conference and share our views on the very important theme of promoting green transformation of economy and society.

China's commitment of "2030 carbon peak, 2060 carbon neutral" marks a major progress in global response to climate change. According to the estimates of the China Green Gold Commission, China needs about RMB 4 trillion annually for investment in clean technology, energy conservation, green transportation, etc., of which 85% to 95% of the funds need to come from the private sector. According to the 2030 opportunities study released by Standard Chartered last year, among the 15 fastest-growing markets in the world, including China, the private sector investment opportunities related to the three United Nations Sustainable Development Goals (sdgs) are nearly 10 trillion US dollars, of which China's investment opportunities and demands are the largest, reaching US $2.829 trillion. Last year, we also conducted a survey of the world's 300 largest investment companies. We found that 53% of the institutions investing in emerging markets listed China as a key investment market. According to our recent sustainable investment assessment, up to 90% of high net worth investors are currently interested in sustainable investment, and 42% of them consider using 15% of their funds for sustainable investment in the next three years.

At present, in order to mobilize the private sector for investment and support capital allocation, we need a policy and regulatory framework that integrates sustainable outcomes and manages ESG risk, higher quality data, uniform definitions and comprehensive and accurate disclosure. We highly agree with the green financial policy framework system established by the people's Bank of China and relevant government departments. Green financial standards, environmental information disclosure, policy incentive mechanism, product innovation system and international cooperation are the five key pillars of the system, which are essential for guiding, encouraging and rewarding companies to transition to a low-carbon economy.

At Standard Chartered, we adopt a three pronged approach, including promoting sustainable finance, managing financial and non-financial risks from climate change, and reducing carbon emissions from our own operations and our financing activities.

In recent years, we have taken positive actions in these areas. In 2017, we committed to stop funding new coal-fired power plants worldwide and are working with our customers to help them make the transition to coal-fired power over the next 10 years. We are also committed to providing $75 billion by the end of 2024, of which $40 billion is for infrastructure for sustainable development and $35 billion is for clean technology financing. We are also committed to achieving net zero carbon emissions for our own operations by 2030 and for our financing activities by 2050.

We will focus on supporting the green belt and road initiative. We are one of the first banks to sign the "belt and road" green investment principles (GIP) and won the "Best Practice Award" from the GIP Steering Committee last year. In 2020, we have participated in more than 120 belt and road projects with a total value of more than $20 billion, of which more than 36% meet the sustainable development goals set by the United Nations, such as clean / renewable energy, waste treatment and water resources projects. In addition, as the co chair of the green products working group under the GIP Secretariat, Standard Chartered works closely with industry peers to promote financial products related to the transition, namely bonds, loans, funds and insurance, so that market participants can better participate in and benefit from the transformation of net zero carbon emissions.

I am also glad to learn that on January 1, 2021, China's carbon market began its first "performance cycle", marking the official launch of the world's largest carbon emission trading rights market. I currently chair the private sector working group on expanding the voluntary carbon market, which comprises more than 200 leading global market participants. The working group, which also includes several institutions from China, aims to establish and expand the private sector voluntary carbon market to help enterprises make the transition to net zero emissions. We are looking forward to contributing to the development of China's carbon emission trading market.

Now is also the time to call on like-minded financial institutions to take joint action. First of all, we must support our customers' transition to net zero carbon emissions, provide financing support for these changes, and create opportunities for industries that are difficult to transform. Second, we have to move money to regions that can create the most change, especially in developing countries. We all need to put more pressure on ourselves to ensure that climate factors are fully considered in financial decision-making; sustainability and long-term vision should be part of corporate strategy and culture. Third, we must support efforts to standardize sustainable financial indicators and products. Finally, we need to make sustainable finance inclusive. We need to work with clients and investors to understand the positive impact that sustainable finance can have, especially in emerging markets, where demand is most urgent.

Standard Chartered Bank has been in China for 163 years. We are committed to fully support China's green transformation, both at home and abroad, including projects along the belt and road initiative. Our network in Asia, Africa and the Middle East, as well as our strong professional capabilities, also give us the opportunity to make our due contribution in this transformation. We look forward to working closely with our customers, partners, investors, think tanks, NGOs and regulators to promote this significant initiative.

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