China and the Green Transition – Economic and Financial Aspects

Authors:

Pages: 44-55

Abstract:

In November 2021 in Glasgow, Scotland, was held the 26th United Nations Climate Change Conference (COP26), at which more than 40 countries, including the world’s largest economies – the United States, the EU, China, Japan, Britain and India, have agreed to implement a plan to accelerate the development of green technologies. By 10 November, the climate conference had not achieved significant results other than reaffirming the previously adopted goal of achieving carbon neutrality by 2060. When the most participants expected the COP26 climate summit in Glasgow to fail, news came of a US–China agreement that revived hopes of success. The two countries, which are the world’s largest producers of carbon emissions, have agreed to work together on climate change issues, including reducing methane emissions, phasing out coal and protecting forests. According to the joint declaration between the United States and China, Beijing will begin phasing out coal between 2026 and 2030 and limit methane emissions. In this regard, the Vice President of the European Commission in charge of the Green Deal of the EU – Frans Timmermans, said that the deal between the United States and China ‘gives room of hope’. This article analyses, on the one hand, the transformation of China’s economy towards green growth, and, on the other hand, examines the financial aspects of this transition.

Keywords:

green transformation, climate change, green finance, green bonds.

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