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City of London Corporation works with China to green the Belt and Road Initiative

3rd Meeting of the UK-China Green Finance Taskforce

 Agenda

The City of London‘s Green Finance Initiative, in partnership with China’s Green Finance Committee, will today publish a set of green finance guidelines for the Belt and Road Initiative (BRI).

Building on existing responsible investment initiatives and published in seven languages, the Green Investment Principles aim to incorporate low-carbon and sustainable development into the BRI by encouraging firms involved and invested in projects to sign up to a voluntary code of practice.

The announcement was made in London at the third meeting of the UK-China Green Finance Taskforce, chaired by the 2012-2013 Lord Mayor of London Sir Roger Gifford and Dr Ma Jun, who sits on the People’s Bank of China Monetary Policy Committee.

The principles, a project first proposed in the 9th UK-China Economic and Financial Dialogue, were drafted by a number of organisations including the World Economic Forum, UNPRI. Belt & Road Bankers Roundtable, the Green Belt and Road Investor Alliance and the Paulson Institute. A full list of the principles is provided at the bottom of this release.

The news comes as more information is released about the UK-China Green Finance Centre, which was first announced by the Lord Mayor of London in Beijing earlier this year.

Funded by nearly £400,000 from the UK Government’s Partnering for Accelerated Climate Transitions programme, the centre will lead the establishment of a secretariat to the principles that will encourage take-up, monitor progress and report at regular intervals.

Supported by a bilingual website, it will also lead on much of the work of the long-established UK-China Green Finance Taskforce, including extending the scope of the successful Task Force on Climate-related Financial Disclosures (TCFD) pilot, which was announced at the UK-China Economic and Financial Dialogue in December 2017.

It will also conduct research into areas of future cooperation in green finance, such as China’s insurance and pension sectors, and how they can be further integrated into UK capital markets.

Sir Roger Gifford, Chairman of the Green Finance Initiative said:

The UK and China are pioneers in green finance, and the announcements today show again why we are truly leaders in this field.

The newly-created UK-China Green Finance Centre is a hugely exciting project, and one that will positively drive forward the industry for years to come.

Im particularly excited by the Green Investment Principles, the first of their kind, and a potential game-changer in mitigating the potential environmental impact of the Belt and Road Initiative.”

Dr Ma Jun, Chairman of the Green Finance Committee said:

The principles are to ensure that environmental consciousness, climate resilience, and social inclusiveness are built into new investment projects in the Belt and Road.

This will mean that the goals outlined in the UN SDGs and the Paris Agreement are met.

Progress Report by the UK-China Green Finance Taskforce, November 2018 The meeting of the UK-China Green Finance Taskforce, the third since the group was established in December 2017, culminated in a progress report “Delivering for a Greener Tomorrow”  Chinese version here. 

The Green Belt and Road Investor Alliance was formed in London in November 2017.

 
 
 

Fiona Reynolds, CEO of the Principles for Responsible Investment (PRI) noted:

“The ambitious Belt and Road Initiative to develop infrastructure linking China to countries along the ancient Silk Road trade route is likely to generate a swath of ESG-compliant projects, with green bond and loan funding crucial to generating capital from international investors to finance the initiative.”

“The guidelines are a welcome development, which complement the PRI’s six principles. Having these in place will be very helpful for investors who might be considering investing in this project.”

 

Notes to editors

The City of London Corporation is the governing body of the Square Mile dedicated to a vibrant and thriving City, supporting a diverse and sustainable London within a globally-successful UK. www.cityoflondon.gov.uk

More information about the Green Belt and Road Investor Alliance can be found at www.beltandroad.london

For more information contact:

Nathan Rodgers, Financial Services Media Officer, City of London Corporation

Tel: 44 (0) 7864 625086

Email: Nathan.rodgers@cityoflondon.gov.uk

 

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