UK PACT supports China’s path to a low carbon future

Five innovative green finance projects awarded grants through China-UK PACT

The China-UK Partnering for Accelerated Climate Transitions (China-UK PACT) programme has today announced that five new capacity-building green finance projects have been awarded just over £1.9 million worth of funding. All the projects will support China in developing ‘greener’ financial systems and a regulatory environment fit for China’s transition to a global carbon neutral economy.

Green finance plays a key role in driving faster greenhouse gas emissions reductions, as it promotes and supports the flow of financial instruments and services towards green investment. China is committed to the green finance agenda and jointly with the UK, has played a leading role in driving global green finance development forward.

The projects were selected following a competitive call for proposals as part of the second phase of the China-UK PACT programme. They include:

• A project to support green decision-making by financial institutions through climate-related financial disclosure and transparency, led by CDP Worldwide
• A BIFS-led project designed to build knowledge and understanding around green investment and support low carbon growth in countries involved in China’s Belt and Road Initiative
• A project led by ClientEarth designed to harmonise the way green finance is considered between the public and private sectors, both domestically and across the entirety of the Belt and Road Initiative
• A project to improve the uptake of Environmental, Social and Corporate Governance (ESG) measures by the Chinese investment community and accelerate finance transition through the creation of a China-UK leadership forum, jointly led by the City of London Corporation and the Beijing Institute of Green Finance and Sustainability (BIFS)
• A project to support the continued scaling of the Chinese green bond market as well as recommend rules, standards, measures and expectations to ensure alignment with international best practice on monitoring, transparency and disclosure, led by Climate Bonds Initiative (CBI)

The projects will each receive grants of between £300,000 and £500,000 and will help China in its ambition to scale up its Nationally Determined Contribution. For more information, see our website.

Since its launch in China in 2018, UK PACT has backed eight green finance projects which have supported the country’s ambition to become carbon neutral before 2060. UK PACT’s new portfolio represents a deepening of that collaboration and the commitment of the two countries to raising climate ambition.

Dame Caroline Wilson, British Ambassador to China said:

“The UK and China have both played a leading role in driving green finance development globally for many years. The UK-China PACT programme is an excellent demonstration of what can be achieved when our two countries collaborate together. It is very exciting to see the second phase beginning this month to help raise ambition on climate change ahead of COP26.”

The new pipeline of projects will build on the success of the first round of China-UK PACT projects. Earlier projects have successfully helped align Chinese green bonds standards with international practices, encouraged ESG investment and TCFD information disclosures, helped incorporate climate risks into financial decision-making and green China’s Belt and Road Initiative. Projects started in February 2021.

Notes to editors

• CDP Worldwide

CDP is a global non-profit that drives companies and governments to reduce their greenhouse gas emissions, safeguard water resources and protect forests.

• Beijing Institute of Finance and Sustainability (BIFS)

The Institute of Finance and Sustainability conducts policy research and serves as an international cooperation platform for green finance and sustainable development in China and around the world.

• City of London Corporation

The City of London Corporation is the governing body of the Square Mile dedicated to a vibrant and thriving City, supporting a diverse and sustainable London within a globally-successful UK.

• ClientEarth

ClientEarth is a charity that uses the power of the law to protect people and the planet.

• Climate Bonds Initiative (CBI)

CBI is an international, investor-focused not-for-profit. The organisation is working on mobilising the $100 trillion bond market for climate change solutions.

• China’s Belt and Road Initiative

A strategy initiated by the People’s Republic of China that seeks to connect Asia with Africa and Europe via land and maritime networks with the aim of improving regional integration, increasing trade and stimulating economic growth.

Implementing Partners of the projects and their partners: