China News Service, July 21 (Shi Rui, China-News Financial Reporter) On the 21st, the World Economic Forum and Oliver Wyman jointly released the report "Addressing China's Climate Challenge: Financing Transformation to Achieve a Net-Zero Future".
Qian Xing, one of the report's authors and a managing partner at Oliver Wyman, said: "The dual-carbon commitment has ushered in a new wave of China's green revolution, and this major economic transformation depends on massive capital investment."
The report pointed out that to achieve carbon neutrality, from 2020 to 2060, the total green financing required by China in the power, steel, transportation, construction and real estate industries is expected to be about 140 trillion yuan, or an average annual capital requirement of more than 3.5 trillion yuan. trillion yuan.
Vigorously carrying out financial innovation and supporting major scientific and technological progress are the keys to China's achievement of net zero emissions.
"One of the challenges to China's green transition is the funding gap, and one of the key reasons is funding mismatches, including mismatches between the types of financing instruments, transaction structures, and financing terms." The report said the data granularity and quality were not high , the lack of clear policy support and supply chain collaboration are also key challenges to be overcome in the net zero transition.
The report focuses on analyzing the technological breakthroughs and financing needs required for the three high-carbon emission industries of transportation, construction and real estate, and steel to achieve net-zero transformation.
For example, from 2020 to 2060, the steel industry will face a funding gap of about 3-4 trillion yuan in the field of steelmaking process optimization, accounting for half of the green financing gap in the entire steel industry.
The widespread use of compact steel equipment, the use of scrap as raw material, and the use of electric furnaces with shorter processes and lower emissions could help reduce carbon emissions in the steel industry by about 8-10% by 2060.
Considering that the steel industry accounts for 13% of China's CO2 emissions (according to the International Energy Agency), this technology application will make a considerable contribution to the net zero goal.
Kai Keller, head of the World Economic Forum's "Future of China and the World's Financial Services" initiative, said at the press conference: "We expect China to leverage its advantages of scale to drive the next round of green revolution on a global scale, and contribute to the global economy and global economy. To establish a leadership position in the supply chain. To this end, China needs to increase policy support, carry out green financial innovation, and deepen cross-industry collaboration.” (Zhongxin Finance)