Advancing sustainable growth in the United States and China

Green Finance

The Chinese government has declared a “war on pollution” and made historic commitments to peak its carbon emissions by 2030 or sooner. But how to fund the green buildings and technology that will be needed to get there? The People’s Bank of China estimates that the country will need to spend more than $600 billion per year over the next five years to achieve its goals—but the government can only fund 10-15 percent of that amount. Private capital will have to fill the gaps.

The challenge is to bridge the higher upfront costs of cutting-edge efficiency technologies, which often pay off only in the longer-term savings. To help address this challenge, the Paulson Institute is working on several green finance initiatives in China, from research and policy recommendations to convening and advocacy.

Kevin Green Finance Paper Cover ENResearch: The Institute recently published a paper on challenges and opportunities in finance of energy-efficient buildings in China. Read the English-language executive summary here.

Convening: Working with China’s Leading Group for Financial and Economic Affairs, the Institute brought together public and private sector stakeholders, who are developing financing mechanisms that will facilitate green building projects in Jiangsu and other provinces. The U.S.–China Green Building Energy Efficiency Fund will be the first U.S.-China public-private partnership aimed at unleashing private and public capital to underwrite green projects in China.

Advocacy: Following a meeting of international green finance experts organized in partnership with the PBOC, SIFMA, UNEP, and Bloomberg Philanthropies in Washington, DC, in May, the Paulson Institute helped develop recommendations for the development of international green finance standards. The recommendations will be incorporated into a Green Finance Committee paper that will be presented at the annual G20 meeting in Hangzhou in September.

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People’s Bank of China Governor Zhou Xiaochuan speaks at the Paulson Institute’s Green Finance Symposium on April 16, 2016 in Washington, D.C.