Published April 21 2021
China will need to reduce emissions by 85 per cent of its 2020 levels to meet its target of carbon neutrality by 2060, according to Betty Wang, Senior China Economist at ANZ – but its motivations go beyond simply addressing the world’s changing climate.
Speaking ahead of the release of ANZ Research’s China’s Carbon Neutrality in 2060 report, Wang said China’s goals form a core part of the country’s macroeconomic policy - and a key plank of its long-term economic transition story.
“While many regard China's decarbonisation policy as a climate policy or even a diplomatic strategy, we regard it as a macroeconomic policy that is well embedded in China's long-term transition story,” she said.
“If we look at China's growth profile and its rising role in global supply chains, the uptrend closely correlates with China's carbon emissions path since 2000.”
“As such, as China gradually focuses more on… sustainable growth, it makes economic sense for China to reduce carbon emissions in the long run.”
You can watch the video below to find out more.
Nancy Wang, Director, Sustainable Finance at ANZ, said it was clear the financial system in China and globally was evolving rapidly to meet the demands of the planet and people.
“Green financing, energy transition financing and sustainability linked financing are all being explored as [businesses] map out their transition plans and line up the financing required,” she said. “We at ANZ are very proud to be supporting our customers on that transition journey.”
Nancy Wang said as a bank, ANZ had seen an “avalanche” of demand for sustainable finance from Chinese customers in recent times.
She said it was encouraging to see equity and debt markets across the industry rise “to the challenge of allocating capital to sustainable activities and sustainable behaviours”.
“Transaction volume in the debt market is at record highs, with increasing diversity in financing formats in both use of proceeds and sustainability linked,” Nancy Wang said.
You can read more on the release of ANZ Research’s China’s Carbon Neutrality in 2060.
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