Green Finance Leadership Conference: Highlights from Day 1


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  1.
The interest of Green Finance by developing markets was clearly visible at the opening of the inaugural Global Green Finance Leadership Program, where over 122 participants representing policy makers, financial regulators, banking associations, and financial institutions, from over 30 different countries were in attendance.

Dr. Ma Jun, Director of the Center of Finance and Development of Tsinghua University, and host of the program shared with participants that the turnout significantly surpassed his expectations, and matched well with his observations of the rapid rise of interest in green finance over the past few years.

Ma commented on how the keen ‘interest’ in the topic of green finance was quickly turning into an ‘urgent need’ for capacity building across policy makers, financial regulators, banking associations, and financial institutions.

These comments were echoed by the distinguished Mr. Zhu Min, President of Tsinghua National Institute of Financial Research, and former Deputy Governor of the PBOC and former Deputy Managing Director of IMF. “Green Finance is a priority for the Chinese Government” and “China will continue to be a leader in green finance, and this program demonstrates this commitment,” said Zhu. Zhu also remarked that Green Bonds issuances needed to rise more than 10000% in order for the world to address climate change.

  2.
Sean Kidney, CEO, Climate Bond Initiative:
“We have a lot of standards and initiatives in green finance but the biggest impediment green investors are facing is the lack of green projects. Climate Bonds Initiative is helping to solve this problem with reports like this (https://www.climatebonds.net/resources/reports/green-infrastructure-investment-opportunities-indonesia) which identify green projects. We must crowd in private investment into green projects.

  3.
Dr. Ma Jun, Director of the Center of Finance and Development of Tsinghua University:

The key steps for building a green finance system are:
1.) Political Signalling at the highest levels.
2.) Breaking down the vision in to sectors/topics.
2.5) Assigning tasks to various ministries.
3.) Ministries taking action.

Ma Jun:
New initiatives for G20 Green Finance Task Force:
- Securitizing sustainable assets.
- Defining sustainable PE/VC assets.
- Application of fintech to sustainable finance.

For UK – China,
- Developing volunteer principles for green B&R
- Launch pilot program for climate/environment disclosure for China/UK FIs.
- Promote securitisation of green loans.
- Demonstration green assets deliver better returns.