New Climate Adaptation Strategy encourages financial institutions to innovate and expand solutions.
Chinese authorities have released a new national climate adaptation strategy covering the country’s response to climate change until 2035.
The National Climate Adaptation Strategy 2035 was released by 17 ministries including the MEE (Ministry of Ecology and Environment), the NDRC (National Development and Reform Commission), the Ministry of Science and Technology, the Ministry of Finance, the Ministry of Natural Resources, and the Shanghai branch of the PBOC (People’s Bank of China).
The strategy presents a major update on the original strategy published in 2013, placing greater emphasis on climate change monitoring, early warning, and risk management.
By 2035, China’s climate change monitoring and early warning capability will reach an advanced level globally, while the climate risk management and prevention system will basically mature, the document says.
It also emphasises regional collaboration and support from the financial and technological sectors. This includes the development of new climate investment and financing models and mechanisms, as well as improvements to climate adaptation statistics collections and information disclosure.
In terms of strengthening fiscal and financial support, China will establish a fiscal policy system to incentivise efforts to combat climate change.
Financial institutions will also be encouraged to expand their green finance activities, using tools that support carbon emission reduction.
In addition, banks, securities firms, insurance companies, mutual funds, and other commercial financial institutions will also be encouraged to invest in climate adaptation projects.
The strategy also highlights plans to promote innovation in the green finance market, including the launch of innovative financial products such as sustainable bonds and catastrophe and climate risk insurance products.
The plan seeks the development of a nationwide climate impact and risk assessment system by 2035, which will include requirements for major projects to incorporate climate into environmental impact assessments and boost early-warning capabilities.
The strategy will also strengthen the framework for varied financial support for climate change adaptation, including efforts to allow international funding and bilateral/multilateral cooperation to play a greater role in China’s transition.
The strategy also includes measures to safeguard agricultural and industrial production, improve public health, and strengthen the resilience of infrastructure in rural and urban areas.
China aims to reach peak carbon by 2030 and carbon neutrality by 2060.