China Working Group

The group is a community for investors who have an interest in the development of China’s climate policy and its implications for investors. It also serves those who are looking to deepen their engagement in the market.

Investors are increasingly seeking to reduce their exposure to climate risks and better position themselves for the opportunities worth trillions that will be created by China’s commitment to carbon neutrality.

The group is mostly facilitated in Mandarin.

The group was established in April 2023. In its initial phase it is open to AIGCC members and non-members that are active in the China market.

Co-Chairs

Dr Guo Peiyuan
Chairman of SynTao Green Finance and China SIF, and a board member of AIGCC

Flora Wang
Head of Stewardship, Asia & Portfolio Manager at Fidelity International.

Contact

Tianjiao Hu
Project Manager, AIGCC

Email Tianjiao Hu

Working Group Objectives

The China Working Group helps international investors understand how to bring climate-aligned investment practice in China, and helps Chinese investors adapt international leading climate investment practice for the local market.

  • Identifying and utilising existing tools, research and engagement to facilitate investor action on climate to China.
  • Discussing, in Chinese (Mandarin), outcomes and findings from other AIGCC meetings and working groups, and considering their local application.
  • Building collaboration and understanding between international and domestic investors operating in China on net zero aligned investing, carbon neutrality goals and engagement.
  • Providing investor feedback on policies, standards and regulations in China.
  • Engaging with domain experts to understand climate priorities and action in China.

Significant Opportunities for Investment

China requires a significant amount of investment to reach its dual-carbon targets of peak carbon use by 2030 and carbon neutrality by 2060. Highly-competitive low-carbon energy options, such as wind and solar, are already deployed at scale in China.

CN¥ 139T

total climate investment demand

CN¥ 3.5T

average annual investment demand

CN¥ 1.6T

annual long term funding gap

Estimates of the National Climate Strategy Center (NCSC), to achieve the “30·60” carbon peaking and carbon neutrality goals, by 2060,

AIGCC is best positioned to support China’s dual-carbon targets by leveraging our experience in the region and connection with climate-aligned investors and international investor networks.

We are able to support domestic investors as they decarbonise their portfolios through existing frameworks, such as the Investor Climate Action Plans (ICAPs) and the Net Zero Investment Framework (NZIF).

Leadership from China has already created significant momentum and has placed Asia on track in the transition to net zero.

Rebecca Mikula-Wright, CEO, AIGCC

Key Resources For Investors in China

Investor Climate Action Plans and The Expectations Ladder

July 2023

This provides investors with clear expectations for issuing and implementing comprehensive climate action plans, including steps investors can take to support the goal of a net-zero emissions economy by 2050 or sooner.

The framework aims to help investors navigate existing expectations and initiatives on climate change. It is inclusive and unique in that it sets out expectations for investors wherever they may be on their climate journey.

It summarizes the key climate actions investors can take right now in the four interlocking areas of the Investor Agenda: investment, corporate engagement, policy advocacy, and investor disclosure. Governance is a cross-cutting theme across all four areas.

Download

Greenwashing and how to avoid it: An introductory guide for Asia’s finance industry

April 2023

This report addresses the prevalence of greenwashing in financial markets in Asia and an overview of the various forms of regulation and guidance being developed to address it.

It features updates on China’s latest regulations addressing greenwashing, across labelling standards, climate disclosure standards, and green taxonomies.

Download

Net zero engagement in Asia-A guide to shareholder climate resolutions

November 2022.

This guide is a practical reference for institutional investors considering shareholder resolutions as a complement to other stewardship options when engaging with companies on climate-related matters.

In this guide, leading corporate lawyers from 11 markets in Asia analyse the jurisdiction-specific nuances of bringing shareholder climate resolutions in private and public listed companies.

Each jurisdiction’s expert also provides a brief summary of key developments relevant to climate risk and ESG in 2021-22 in that jurisdiction, to situate investor engagement within its appropriate local context.

Download

China Emissions Trading System – A new dawn

August 2021
The advent of China’s Emission Trading Scheme (ETS) will bring direct carbon costs to high emission sectors in China and create the world’s largest carbon market.

This study assesses these five sectors in detail, examining their industry structures, decarbonisation pathways, company developments and scenario analysis of potential outcomes.

Download

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AIGCC expands investor work in China with launch of new working group

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