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02 Mar China, US Become Co-Chairmen of G20 Re-established Sustainable Financial Study Group
The G20 re-established the Sustainable Finance Study Group (SFSG) for preventing finance risks caused by climate change, and supporting disclosures of climate-related information, as reported by Caixin in February 28. The co-chairmen of SFSG are China’s PBoC and the US Department of the Treasury, which will also promote the collaboration of sustainable finance between China and the US. Yi Gang, Governor of PBoC, said at the G20 video conference on February 26 that the Chinese central bank will pay attention to the possible economic and financial risks caused by climate change, and will promote green transformation with the SFSG.
The UN report indicated that the climate crisis is an urgent challenge. Under the most optimistic estimation, the global greenhouse emissions can be significantly reduced after 2020, and the global temperature will rise 1 Celsius degree. Otherwise, the sea-level is possible to increase 2 meters. Therefore, in 2021, the green economy is accelerating and ESG related investments attract more attention, which reflects the positive development of sustainable finance.
For the US, for example, the Federal Reserve have joined the Network for Greening the Financial System (NGFS), which consists of 83 central banks and financial supervisory institutions. For China, one of the country’s annual key works in 2020 is about the implementation plans of peaking carbon emissions and reaching carbon neutrality, as well as the improvement of green finance policy frameworks and systems. Most recently, China’s State Council released guidelines on February 22 to promote the construction of a green, low-carbon, and circular economy in the country.