The 31st Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting is currently underway in Peru, emphasizing \"Sustainable growth for resilient development\" as a key agenda. Amidst this focus, China emerges as a leading example in the realm of sustainable finance, offering valuable insights for global economies.
Sustainable finance integrates environmental, social, and corporate governance (ESG) factors into investment decisions, ensuring that financial growth aligns with broader societal and ecological goals. Green finance, a cornerstone of sustainable finance, has gained widespread consensus among APEC members due to pressing global challenges such as industrial pollutant emissions and climate change.
China's Rapid Growth in Green Finance
According to data from the People’s Bank of China (PBOC), as of September 2024, China’s green finance loans and bonds reached approximately 38 trillion yuan ($5.25 trillion). This includes around 36 trillion yuan ($4.98 trillion) in green loans, a figure that has quadrupled since 2015, and 2 trillion yuan ($280 billion) in green bonds, both of which are the highest globally.
The surge in China’s green finance sector is attributed to the cohesive efforts between leadership, state departments, and financial and industrial enterprises. In September 2015, the Communist Party of China (CPC) Central Committee and the State Council introduced the Integrated Reform Plan for Promoting Ecological Progress, marking the inception of China’s green financial system. This plan encouraged financial institutions to increase grants of green loans.
In 2016, seven state departments, including the PBOC and the Ministry of Finance, collaboratively issued the Guidelines for Establishing the Green Financial System, aiming to attract more social capital into green industries. These strategic initiatives have positioned China as a trailblazer in sustainable finance, setting a benchmark for other nations participating in APEC.
As APEC members strive to foster sustainable growth, China’s experiences and successes in green finance provide a robust framework for addressing environmental challenges while promoting economic resilience.
Reference(s):
China offers best case-study for APEC sustainable finance proposal
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