China Green Finance Task Force Report: Development Banks
China is supporting investment in developing countries through the BRICS Development Bank, the Asian Infrastructure Invesment Bank and the Silk Road Fund. It aims to draw upon the experiences and rules of other multilateral development agencies to ensure that this financing encourages environmentally and socially responsible investment. The paper offers some recommendations on how the BRICS Development Bank, the AIIB and the Silk Road Fund can vitalize green finance on a global scale:
- Adopt or reference the Equator Principles to create a high-standard environmental and social risk assessment system for projects.
- Care for both the productivity and sustainable growth of the countries receiving overseas investment: ensure they do not become channels for Chinese companies to offload outdated and polluting industrial capacities to other developing countries.
- Establish a strong environmental disclosure mechanism target for green projects out of the loans and investments provided by BRICS Development Bank and AIIB
- Issue green bonds and encourage private capital to facilitate the green transformation
- Encourage private sectors to make green investments through PPP and other means
- Fully consider energy conservation and emission reductionrequirements in the procurement, design and construction process