Report on the Work of the UK and China in Green Finance at the London Climate Week

Ma Jun, co-chair of the task force, reported that a subgroup—the 'transition finance working group'—was formed last June. It includes 29 organizations from the UK and China working on standards, developing and assessing corporate transition plans, and finding suitable financial solutions. For example, given the UK's extensive experience in building decarbonization, the task force is considering a building decarbonization project in Beijing's business district.

New Bond Index

The second announcement was the FTSE CCB Dim Sum Green Bond Index, jointly created by FTSE Russell, a subsidiary of the London Stock Exchange index provider, and the China Construction Bank. This new index will help international investors track the prices of yuan-denominated green bonds outside mainland China, known as dim sum bonds. An industry specialist noted that the publication of such data increases market transparency and its attractiveness for investment, which can stimulate the inflow of international capital into green bonds, thereby supporting green projects and the development of green finance markets.

Discussion on Cooperation Prospects

Sir Charles Bowman, co-chair of the UK-China Green Finance Task Force, acknowledged that the establishment of the task force in 2017 coincided with the end of the 'golden age' of UK-China relations. He noted some cooling after this period, but the task force successfully maintained 'business-to-business interaction.' Bowman added that relations have begun to recover over the past two years, with Starmer's visit to China in January being a significant moment. Ma Jun, for his part, described green finance as a very 'depoliticized' aspect of UK-China cooperation, noting that the task force has achieved tangible results since its founding in 2017.

Seeking Common Ground

Dialogue Earth has participated in the London Climate Action Week for three consecutive years. Previously, few Chinese organizations participated, and those who did rarely held events. However, the situation has changed this year. Lawrence Yu from Civic Exchange, a Hong Kong public policy think tank, stated that amid reduced US attention to climate issues, the London week has become more influential. This was also driven by expectations of stable transition policies stemming from China's 15-year five-year economic plan for 2026–2030.

One of the events in London was the 19th Global Sustainable Finance Meeting of the UN Environment Programme Finance Initiative (UNEP FI). Thirty Chinese banks registered in this initiative according to Responsible Banking Principles, exceeding the figures of any other country. Guo Peiyuan, UNEP FI representative in China and chairman of the China Sustainable Investment Forum, said that a delegation of nine Chinese banks attended the London Climate Week to familiarize themselves with various international organizations and discuss sustainable investment, disclosure, and sustainable bonds.

Guo noted that the trip to London allows people to better understand how Europe and the US discuss climate issues. He added that while the EU's overall goals have not changed, there is a softening of some sectoral policies, such as regarding the phase-out of gasoline and diesel cars, and companies are quietly changing their operations. 'Behind closed doors, large companies are beginning to discuss how they can change their climate targets, as factors like AI usage and energy prices make achieving existing goals difficult,' he said. Guo also emphasized that, unlike this, Chinese banks and enterprises are steadily advancing their low-carbon transition work. Some have set goals but have not necessarily made them public, which complicates discussions about the need for adjustment. Guo believes that the opportunity for a full discussion of differences in policy and industrial strategy helped mutual understanding and the search for common ground, despite disagreements.

From Bilateral Cooperation to Global

The London Climate Action Week gained global significance, bringing together over a thousand different activities, including policy discussions, sharing investment practices, showcasing corporate capabilities, and NGO events. The participation of Chinese organizations indicates their growing involvement in partnerships with British partners and in global climate discussions.

Guo Peiyuan believes that the successes in bilateral cooperation between the UK and China, including issues of compatibility and banking partnerships, can serve as a model for other bilateral relationships. He noted that the current geopolitical situation makes unified global action increasingly complex, highlighting a real need to strengthen regional and bilateral cooperation. His team is working to establish connections between Chinese financial institutions and institutions in Brazil and other countries.

Ma Jun and Lawrence Yu stated that China and the UK can join forces to promote transitions in the Global South. Two and a half years ago, Ma Jun founded the Capacity Building Alliance for Sustainable Investment (CASI). He reported that CASI aims to provide sustainable finance training to 100,000 learners worldwide and has already covered over 100 countries and regions. Ma Jun stressed that 'the UK is a world leader in green finance; about 20 out of 74 CASI organizations are British or closely associated with this country.' Lawrence Yu stated that Hong Kong serves as an important bridge between China and the UK, capable of connecting UK and EU standards with China's advanced technologies, and then promoting this combination in the Global South. Despite potential slowdown due to the change of prime minister, Yu predicts that green cooperation between China and the UK will remain stable until the UK elections in 2029, expressing hope that this partnership will be beneficial for the global transition.