12 June 2015: UN Environment Programme (UNEP) Executive Director, Achim Steiner, met with Pan Gongsheng, Deputy Governor of China’s central bank, the People’s Bank of China (PBC), to mark the publication of the final report of the Green Finance Task Force, addressing practical steps and policy recommendations for aligning China’s financial and capital markets with sustainable development objectives.

Initially released in April 2015, the report, ‘Establishing China’s Green Financial System,’ estimates that green investments of approximately US$320 billion per year are necessary to meet environmental targets under China’s 13th Five-year Plan, which will require a stronger involvement of the financial system.

The document proposes specific recommendations for establishing a green financial system, including: specialized investment institutions, such as green banks or green funds; fiscal and financial policy support, such as discounted green loans or green bonds; financial infrastructure, such as carbon markets, green enterprise rating systems or green stock indices; and legal infrastructure, such as green insurance or mandatory environmental disclosure requirements.

The report was jointly produced by the PBC Research Bureau and UNEP’s Inquiry into the Design of a Sustainable Financial System. The UNEP Inquiry aims to identify factors that inhibit the flow of funds from the global financial system into sustainable technologies and products, and develops recommendations towards better alignment of green economy objectives with the financial system. [UNEP Press Release] [UNEP Inquiry Website]