Pierre Gramegna, managing director of the European Stability Mechanism, has highlighted the immense opportunities for Europe and China to strengthen cooperation toward stabilizing the global economy, as well as potential collaboration in climate-related fields like green financing.
In an interview with China Global Television (CGTN), the intergovernmental organization leader stressed that China and Europe share key interests amid rising uncertainties and trade tensions globally.
"What is obvious is that China and the European Union are the two world champions of export. China is our first supplier with more than 20 percent of our imports. And we are the third customer for you here in China. So, our trade relations are manifold and are very deep. I think both Europe and China would like to have less protectionism instead of more. Now we are faced with increasing tariffs coming from the United States, which will reduce international trade or make it more difficult, will push prices up, increase inflation, which might, again, increase interest rates. And all this is not good for growth. So we are in the same boat there with China, and we also have the same philosophy in terms of multilateral trade. We rely on the World Trade Organization when there are issues. We negotiate to reduce the trade tensions," said Gramegna.
He also emphasized that both sides are increasingly committed to exploring novel ways to combat climate change, pointing to green bonds -- financial instruments that raise funds for environmentally sustainable projects -- as a key area for potential partnership.
"Europe is certainly the trendsetter and the leader in green bonds. I think of the European Investment Bank, for example, who was the first one to issue a green bond and is still the world champion in it, but I'm glad to see that the interest in China is increasing. Unfortunately, there are some areas in the world, and in particular the United States, where there is less interest recently for ESG bonds or green bonds. But I have to underline, look at the facts -- climate change is there to stay. We've had the hottest years in history. In the last 5, 6 years, there were all the hottest years ever measured. We are not reaching the goals that we have set ourselves in the Paris Accords. So in the medium and long term, there's no escape. And I'm glad that Europe and China are continuing to make sure that finance will help green the economy, because we will not be able to achieve that without sustainable finance," he said.
China, EU must collaborate to curb protectionism, promote green economy transition: expert
China, EU must collaborate to curb protectionism, promote green economy transition: expert
