This progress comes at a time when the West is witnessing a decline in enthusiasm for green investment, especially with political pressures in Washington and Europe. In contrast, Beijing continues to expand its projects to achieve the goal of reaching peak emissions by 2030 and achieving carbon neutrality by 2060.
China leads most solar and wind energy projects globally and is increasing its investments in green hydrogen and nuclear energy, making this sector an important source of growth amid the slowdown in the real estate sector. Although most Chinese green projects are still financed through loans, analysts expect increased reliance on bonds in the coming years to cover the requirements of the energy transition.
Beijing also benefits from greater flexibility in supporting green finance through the central bank, unlike the United States and Europe, where this intervention is a contentious issue. This makes the Chinese market mainly dependent on domestic banks, insurance companies, and asset managers.
(Financial Times)
