China News Agency, Beijing, April 16 (Liu Wenwen) Zhu Min, Dean of the National Institute of Financial Research of Tsinghua University and former Vice President of the International Monetary Fund, said on the 16th that carbon neutrality will fundamentally reshape China's future economic development model and economic structure, and in this process, finance will play a key role.
On the same day, Zhu Min made the above statement when he attended the 2022 Tsinghua PBCSF Global Financial Forum.
In his view, carbon neutrality is a paradigm change.
China has only 30 years from carbon peak to carbon neutrality, which means that carbon neutrality will cause drastic and profound changes in the entire economic structure, which is a major challenge and a major opportunity for China.
In this process, finance will play a key role.
His analysis pointed out that, incrementally, finance provides zero-carbon financial financing with huge scale, long term and high risk for carbon neutrality.
"It is estimated that energy financing will reach 185 trillion yuan (RMB, the same below), which is a fairly large-scale investment." In addition, the foundation of carbon neutrality is science and technology innovation, and finance should also support science and technology investment.
The incremental investment is huge, but the stock challenge is also huge.
He went on to say that because asset prices are redefined in the transition to carbon neutrality, the balance sheets of countries, industries, companies, financial institutions, and residents will all change accordingly.
The scale of China's total assets exceeds 1,000 trillion yuan. It is a major thing for such a huge asset to undergo asset price reshaping.
He revealed that at present, among the four major state-owned banks, high energy and high carbon emission industries still account for a high proportion of bank loans, and stock adjustment is urgently needed.
In this process, managing the financial risks of the transition to carbon neutrality is particularly important.
"In this sense, the entire carbon neutrality is actually a fundamentally subversive reconstruction of China's future economic development model and economic structure, the entire economy from high-carbon to low-carbon, and reshapes the entire manufacturing industry through energy revolution and economic innovation. He said that the financial industry must adapt to the development of the real economy in this process, and the main reform measures include building a financial macro-management framework and building a zero-carbon financial risk management system.
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