Interview: Expert says China contributes wisdom to global green energy transition under G20 framework

BALI, Indonesia, Nov. 13 (Xinhua) -- China has achieved substantial progress in providing solutions to tackle climate change and promote global green energy transition under the Group of 20 (G20) framework, said Ma Jun, co-chair of the G20 Sustainable Finance Working Group (SFWG), in a recent interview with Xinhua.

To cope with climate change and improve energy efficiency, China has made preliminary headway in building up a green finance system, said Ma, also director of the Beijing-based Institute of Finance and Sustainability.

In 2016, when holding the rotating G20 presidency, China introduced green finance into the G20 agenda for the first time. In 2021, China and other countries jointly formulated the G20 Sustainable Finance Roadmap, providing important guidance for financial support to address climate change.

Themed "Recover Together, Recover Stronger," the 17th Group of 20 Summit will take place from Tuesday to Wednesday in Bali, Indonesia, with a focus on three priority issues, including sustainable energy transition.

The event is likely to witness endorsement by G20 leaders of a transition finance framework, which was developed by the SFWG to support those companies and activities that are not yet designated as "green" but are in need of funds for their clean energy transition, Ma said.

"China has played a key role in promoting the transition finance framework, coordinating views and forging consensus," Ma said.

Due to geopolitical tensions and extreme weather events, many countries are faced with energy crises. Ma said one of the factors deteriorating the global energy condition is that many traditional energy firms are unable to secure low-cost funds to finance their transition into clean energy, and that is where the transition finance framework comes into play.

"Financial institutions traditionally were reluctant to invest in high carbon-emitting companies but some of these firms actually have the potential to shift to low-carbon models, and the framework would help solve the issue," Ma said.

He added that China has led or participated in various global initiatives, which helped set the standards and provided guidance for sustainable finance.

China has also been sharing its expertise in sustainable finance with the rest of the world, Ma said.

By October 2022, dozens of global institutions have signed up for the Green Investment Principles for the Belt and Road, which was initiated by the Green Finance Committee of China Society for Finance and Banking and the City of London Corporation's Green Finance Initiative, facilitating the green transition of countries along the Belt and Road, Ma said.