Photo @Zhufan on Pixabay
As a major coal producer with a large coal power capacity, Shanxi is facing the serious challenge of low-carbon transition that demands huge financial investments. Transition finance is expected to play an important role in supporting and accelerating Shanxi’s low-carbon transition. On September 13, NRDC, the National School of Development of Peking University, and the Institute of Finance and Sustainability (IFS) co-hosted their first project workshop entitled, “The Transition Roadmap and Financial Mechanism for Coal Power Enterprises’ Low-carbon Transition in Shanxi Province”. Experts from multilateral development banks, commercial banks, investment institutions, coal power enterprises, and industry discussed pathways and challenges for the transition at the meeting. Dr. Ma Jun, Chairman of China Green Finance Committee and the project lead, emphasized that a transition finance project should set: 1) a clear roadmap and carbon reduction goal; 2) clear verification, reporting, and disclosure requirements; and 3) a multi-dimensional fiscal and financial mechanism for reward and punishment.