China Report: The Risks and Opportunities of Stranded Assets

Inquiry Community: International Institute for Sustainable Development

Inquiry Publications

  • China Report: The Risks and Opportunities of Stranded Assets

    Date: 06-Oct-2015

    The rise and fall of different technologies, products and businesses are central to rising productivity in healthy, well-functioning markets. This process can result in “stranded assets”—assets that have suffered from unanticipated or premature write-downs, devaluations or conversion to liabilities. Stranded assets are therefore a regular and necessary feature of dynamic economic systems, a phenomenon inherent

  • China Report: Lessons from the Development of Green Finance in China

    Date: 06-Oct-2015

    With the initial progress of China’s green finance market, some lessons are emerging that are useful both for the further development of the green finance system and for other emerging market countries embarking on green finance development.  Strategic political commitment has been the key driver for China’s development of green finance, but translating this into

  • China Report: A Systemic View of the Insurance Industry and Sustainable Development

    Date: 06-Oct-2015

    The contribution of the insurance industry to sustainable development relates to its three roles as a financial loss “shock absorber” in reducing real risks to assets, in safety and health, and as a significant investor in the real economy. Particular areas where the insurance industry is responding to sustainable development challenges are in relation to

  • China Report: Environmental and Industrial Policy Environment

    Date: 06-Oct-2015

    This paper outlines the frameworks of Chinese law and policy concerning environmental protection, public investment, financial policy and industrial policy and the challenges they face. Policy and Legal Frameworks: Over the past 20 years, China has built up a comprehensive system of laws,regulations, rules, standards and guidance on environmental protection. However, challenges remain an inadequate institutional

  • China Report: A Framework for Green Finance

    Date: 06-Oct-2015

    The existence of externalities has made it hard to quantify the intrinsic value of the “green mountains and blue water” of the natural environment. This has led to a dysfunction in traditional financial markets, which are delivering an insufficient supply of capital for green development and an oversupply of capital for highly polluting activities. As a new financial

  • China Report: Demand for Green Finance

    Date: 06-Oct-2015

    This paper reviews the statistics on investment in fixed assets of key green sectors in China to date and estimates the demand for green finance over the next five years, from 2015 to 2020. It estimates over 3 per cent of GDP—RMB 1,642 billion (USD 260 billion)—was invested into core green industry and infrastructure sectors in 2012.

  • China Report: Problems and Difficulties in the Development of China’s Green Finance

    Date: 06-Oct-2015

    In recent years, financial market policy-makers and regulators in China have shown leadership in advancing their roles in creating a green financial system. However, the impacts to date have been constrained by countervailing forces. In particular, the performance criteria on which local government officials are assessed still prioritizes economic growth over environmental compliance. The positive

  • China Report: Monetary Policy and Green Finance

    Date: 06-Oct-2015

    Monetary policy has been largely neglected in the worldwide discussions on green finance. Similarly, most central banks have not even started thinking about their role in helping society reach its environmental objectives and about the potential implications of environmental degradation for their mandates. Bringing light to this blind spot is critical. This report aims to

  • China Report: Greening China’s Bond Market

    Date: 06-Oct-2015

    This reports rovides an overview of the green bonds theme, innovative structures in the international market and potential application in China. A key message is that green finance, in addition to providing a green benefit, can assist in implementing and enforcing financial reforms that address imbalances in China’s financial system. Another message is that providing

  • China Report: Internalizing Climate Mitigation for Financial Policy-Makers

    Date: 06-Oct-2015

    The paper also shows how the  objectives of financial policy-makers—such as investor protection, transparency, maintaining the safety and soundness of financial firms, financial stability, tackling systemic risk, reducing information asymmetries, tacking market failures and developmental objectives— offer multiple avenues to legitimize policy measures that can contribute to the greening of the financial system. In particular,

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