By Dr. MA Jun
COVID-19 sent shock waves through the global economy and financial markets yet green bonds and ESG funds have proved to be more resilient in these turbulent times. To better understand why as well as the potential of green finance, CWR sat down with Dr. Ma Jun, the Chairman of China Green Finance Committee and the former chief economist of the People’s Bank of China , to discuss green recovery in China and the push for environmentally risk-aware financial institutions in post-COVID times.
Here are the views from Dr. Ma:
(1) China should include more green projects in its post-COVID stimulus package, such as allocating proceeds to green projects from its special bond issuance & incentivising green consumption
(2) Post COVID-19, more investors may be attracted to ESG due to better performance & lower volatility in the asset class
(3) Regulatory action will pave the way for higher quality green finance products & for financial institutions to have a better understanding of environmental risks & take action to manage them