AIGCC launches China working group to accelerate sustainable investment

Looking to increase investors' engagement with decarbonisation policies

The Asia Investor Group on Climate Change (AIGCC) has established a working group in China to “acknowledge market nuances within Asia when net zero plans are being implemented” and encourage investors in the region to decarbonise.

AIGCC’s investor-led working groups allow members to participate in setting research and policy objectives for AIGCC while also growing expertise and knowledge in key areas of investor practice.

In the first year of its launch, the China working group will be open to Chinese investors who are not currently AIGCC members to encourage an active and dynamic discussion, the AIGCC said. This new working group brings the network’s total to seven, the other six being the energy transition, engagement and policy, forest and land use, Japan, Paris-aligned investment, and physical risk and resilience working groups.

Valerie Kwan, director, engagement at AIGCC, said: “With the global transition to net zero well underway, investors recognise the need to acknowledge market nuances within Asia when net zero plans are being implemented.”

China has set dual-carbon targets of peak carbon use by 2030 and carbon neutrality by 2060 but is currently accelerating its coal plant production.

Speaking at the inaugural group meeting today, Qimin Chai, director of strategic planning, National Centre for Climate Change Strategy and International Cooperation, from China’s Ministry of Ecology and Environment, said investment would therefore be key in meeting China’s targets.

“To achieve China’s 2060 carbon neutrality goal, over 139 trillion RMB ($21trn) investment will be needed, with a long-term funding gap of 1.6 trillion RMB ($232bn) per year,” he said.

This creates opportunities for investors, the AIGCC said.

“Investors are increasingly seeking to reduce their exposure to climate risks and better position themselves for the opportunities worth trillions of dollars that will be created by China’s commitment to carbon neutrality,” AIGCC CEO Rebecca Mikula-Wright said.

Kwan added: “The common goals of markets towards carbon neutrality and differentiated responsibilities in the transition calls for accelerated efforts in the region.

“Through the China working group, we are keen to foster an environment for conversations among investors with an interest in the developments of climate policy in China and are looking to deepen their engagement in the market.”