China's advancements in green transition and sustainable development -- the two main topics at this year's just concluded Summer Davos forum -- are spearheading the global effort in green transformation, according to Zhu Ning, senior partner and head of China at the Brunswick Group.
In an interview with China Global Television Network (CGTN), Zhu shared his insights on China's efforts to promote new energy transformation and the country's green finance sector.
"I think China is really excelling in a new energy transformation which I think is really not only in China's own interest but in the interest of the greater groups of the whole world. In addition, I think this is, I mean, if possible, this is really a very good way of combining social costs and economic growth all in one effort. So in that regard, I think China is really leading this effort of global green transformation in the whole world. Of course, there is some difference of opinion regarding how that is going to spill over to the rest of the world or impact the rest of the automobile industry in other parts of the world. But I think there is, there is going to be an area in which the two sides can work very closely with each other for the greater good of the people on this planet," said Zhu.
Zhu emphasized two areas where China has made significant progress: green bonds and loans for environmentally conscious enterprises, which are driving the green and renewable transformation in China.
"In short, China has been making a lot of progress, and there is still more room to grow. I think in the areas which I think we have made a lot of progress in, to highlight two areas -- one is green bond. I think once you can satisfy the criteria by being identified as a green bond, the insurance process is made easier, and also the interest rate is made lower. So that's really providing a very concrete incentive for companies to be more conscious and more environmentally friendly. The second area I think there is increasing emphasis on, I mean, certain loans are also turning towards the more environmentally conscious and friendly enterprises, which given that loan is the majority of the financing for Chinese corporations. This is also a very, I think policy-guided area where I think green or renewable transformation is made possible," Zhu said.
In promoting China's economic transformation and development, Zhu highlighted three strategies: mitigating cumulative financial risks, better serving the real economy, and following the natural development rules of finance.
"I think huge, I mean, I am probably being partial, but I think finance is really playing a pivotal role in China's economic transformation and development. So in my view, I think following up on President Xi's statement on the financial reform, I think the first thing is of course trying to prevent and diffuse any accumulative financial risks inside China's economic system. And the second part is of course, I think, to better serve the real economy, which is becoming more and more of the importance of China's economic policy. And three I think we want to follow the natural development rules of finance, trying to create a more inclusive and more sustainable ecosystem for financial institutions, for investors, for corporations to all benefit from a more developed financial market in China," said Zhu.
China leads green transition combining social cost and economic growth: expert
China's leads green transition combining social cost and economic growth: expert
