Initiative to jointly build belt and road requires support from green finance

By web desk On Jun 26, 2024

Aerial photo taken on Oct. 16, 2022 shows the construction site of the erection of the last box girder on the Jakarta-Bandung High-Speed Railway in Purwakarta, Indonesia. With a design speed of 350 km per hour, the railway is a flagship project that synergizes the China-proposed Belt and Road Initiative and Indonesia's Global Maritime Fulcrum strategy. Built with Chinese technology, it is a model of cooperation between developing countries. TO GO WITH "Feature: Jakarta-Bandung High Speed Railway construction sees closer China-Indonesia cooperation" (Photo by Xu Qin/Xinhua via Getty Images)

BEIJING, : Director of the Green Finance Committee at the China Society for Finance and Banking Ma Jun said that projects under the initiative to jointly build the Belt and Road require support from green finance.

Ma Jun shared insights on promoting green and low-carbon development in developing countries at the 15th Annual Meeting of the New Champions in Dalian, China. He pointed out that China boasts a 30 trillion RMB green loan market, facilitating rapid developments in sectors such as new energy vehicles and batteries.

While related industries are similarly advancing in Belt and Road countries, many of these are low-income developing nations lacking infrastructure construction capabilities, mature green bond markets, capital markets, and green disclosure standards necessary for fostering local green finance systems.

Therefore, international resources are essential to assist these countries, with China having helped over the past two years in aiding the development of developing countries, CEN reported.

Ma Jun highlighted that China’s green finance sector is rapidly evolving, supporting the growth of renewable industries and contributing to global development. For instance, a significant portion of the production and consumption in the electric vehicle and battery industries occurs in China, leveraging cost reductions, economies of scale, and innovation. Thus, global collaboration is crucial to benefiting from China’s competitively priced green products.

“Accelerating the green and low-carbon transition is particularly beneficial to the global economy, especially emerging markets,” Ma Jun asserted.

In addition to trade cooperation, Chinese enterprises are establishing joint ventures with some developing countries, reducing costs while introducing new technologies that promote local employment and economic development.