A big move: China's central bank, the People's Bank of China (PBoC), issues a 'green finance assessment plan for financial institutions' (ibit.ly/bA1t). The results are said to be incorporated in PBoC's banking policies and prudent management tools, i.e., bank ranking.
1/quantitive (80%)
% of green finance activities & operation, YoY growth & financial risks

2/qualitative (20%)
-green finance strategy, planning and governance
-climate risk stress test & managment
-% non-green & brown assets
-performance on *overseas green finance*
It is a *significant* move for China to regulate the booming green finance industry (i.e. #1 on green bond), both domestically and overseas.

For years, China has been accused of financing highly polluting projects in BRI and are urged to move away from the brown industries.
This new assessment plan DOES NOT signal any prohibition for Chinese banks to stop pouring money into non-green/brown projects. It's also far away from a ban on fossil fuel projects. Still, it's a remarkable regulative move on China's financial institutions' overseas activities.

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More from @LHongqiao

9 Jun
China's economic planner NDRC just released two interim management measures on the pricing and cost monitoring of natural gas pipeline transportation (ibit.ly/S4zq). The two measures will come into force on 01/01/2022 and valid for eight years - till the end of 2030.
In the market reform (ibit.ly/m2fl) towards "one nation, one network", China's inter-provincial natural gas pipelines are concentrated in one state-owned enterprise - PipeChina (ibit.ly/SDZs). The new policies apply to this SOE & third-party market players.
The new interim policy regrouped the inter-provincial pipelines into four regions, to simplify the previously 15 operational rates to only 4. The goals are to stimulate market competition, secure energy security, optimize transportation routes & improve operational efficiency.
Read 5 tweets
8 Jun
UPDATE - How do China's Party leadership and its bureautic machine operate to ensure the achievement of the country's 14th Five-year Plan (14FYP) and accelerate the actions required to hit the 'dual-carbon goals' on peak emissions and carbon neutrality?

The Party | China's leader Xi Jinping reconfirmed (t.ly/AEMQ) & reassured (t.ly/cRKK) China's determination on the dual-carbon goals.
"This will undoubtedly be a 'tough battle'", says Xi, using a similar narrative to the 'war on pollution' in 2013.
1/n Image
To ensure the Party's leadership, the Central Ecological and Environmental Inspection Team (CEEIT) is further institutionalised (new administrative measures: t.ly/fu1R). Its work is prioritised and enforced despite a general budget cut.

Read 20 tweets
8 Jun
Chinese Academy of Environmental Planning (MEE's advisory) proposes new timelines for peak emissions:

- Industry by 2025
- Power, transport and building by 2030

The above represent 60% and 30% of China's national CO2 emissions, according to CAEP.

Another approach examining emissions at the municipal level also indicates the potential of China peaking emission by 2025.

Prof ZOU Ji @EnergyFdn: cities accounting for 40% of nationwide emissions have peaked & another 40% are close to the peak. (t.ly/9mwf)
Sorry, need to clarify my first tweet: the 60% industry sourced CO2 emission covers both direct and indirect emissions including power consumption, while the 30% on power, transport and building is my miscalculation. The CAEP only says all the above adds to 90% of CO2 emissions.
Read 6 tweets
30 Mar
BREAKING - China is revising the interim regulation on the Emissions Trading System (ETS) published just 3 months ago. t.ly/HC9V

The biggest change:
- introduces a *total emissions cap* for allocations
- introduces *auction*
- specifics pilot integration

This comes after the release of another interim guideline on greenhouse gas emission reporting and verification (MRV) yesterday. t.ly/vBhN

@StianReklev has summarised the news in his tweets:

The new draft for revision reveals a few very important messages:

1. China's 2030 peak emission and 2060 net-zero climate pledge is locked down to *CO2 only*, not overall greenhouse emissions Image
Read 15 tweets
28 Mar
NEW - China *cut 1/3* of central govt budget on the environment, making it the 2nd largest item experiencing cuts after transportation. t.ly/F3YA

Relevant govt organs also see significant budget shrinks on the environment, energy, biodiversity & climate.

The National Energy Administration (NEA) aims to cut 72.25% of its expenses in 2021 vs. the final count in 2020, largely due to a financial allocation cut.

In particular:
Renewable energy -99.26%
Energy management -46.34%
Science & technology -99.25%

NEA explains why:

- Donation to intl organization on renewable energy pulled up the expense in 2020

- Reduction on one-off projects and implementation of central govt's order on "tightening up the expenses" lead to budget cut on energy affairs

- Closure of research projects
Read 14 tweets
27 Mar
I figured people are eager to know about the most recent update on China's climate actions. I'll try to do a weekly round-up here. For more detailed China climate news updates, pls do subscribe @CarbonBrief's daily & weekly brief (t.ly/oDrg) compiled by @tracyyou.
1.1 Beijing CPC committee & govt committed to building a national voluntary GHG emissions reduction management & trading center t.ly/b8Ak

Background: the new China ETS allows entities to offset 5% of verified emissions via China Certified Emissions Reduction (CCER)
1.2 The same policy document also says to implement Extended Producer Responsibility (EPR) on end-of-life EV batteries, which can create pollution but also serve as a source of rare critical raw materials. In addition, it says to set up a marketized *green development fund*.
Read 35 tweets

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