China, EU launch finance taxonomy for green assets

The People’s Bank of China (PBoC) and the European Commission jointly launched a sustainable finance taxonomy on Thursday (November 4) to recognize green financial assets in China and Europe, contributing to the formation of a new global standard on green finance products.

The launch came after Chinese President Xi Jinping said in a written statement to the COP26 summit on Monday that China would continue to prioritize ecological conservation and pursue a green and low-carbon path to development.

Xi also said China would speed up the transition to green and low-carbon energy, vigorously develop renewable energy and plan and build large wind and photovoltaic power stations.

Representatives of Chinese financial institutions, including the Bank of China (BOC), China International Capital Corporation (CICC) and the Industrial and Commercial Bank of China (ICBC), said in a side event at COP26 that they had taken action to contribute to the country’s green finance sector’s development, but their carbon neutrality work should be implemented in an orderly manner to avoid creating credit risks.

In March this year, Xi announced China’s commitment to achieving its major targets on fighting climate change, including a carbon emissions peak in 2030 and carbon neutrality by 2060. On September 22, he reiterated the targets when speaking via videolink to the UN General Assembly in New York.

Xi did not personally attend the United Nations Climate Change Conference, or COP26, in Glasgow, but on Monday delivered a statement to the international community via video link.

He said China would foster a green, low-carbon and circular economic system at a fast pace, press ahead with industrial structure adjustment and rein in the irrational development of energy-intensive and high-emissions projects.

“Specific implementation plans for key areas such as energy, industry, construction and transport, and for key sectors such as coal, electricity, iron and steel, and cement, will be rolled out, coupled with supporting measures in terms of science and technology, carbon sink, fiscal and taxation and financial incentives,” he said.