China will take the initiative on climate finance

Subject

China's 'climate finance' efforts.

Significance

During the December 2015 COP 21 climate change summit in Paris, Beijing acted as an enabler for the negotiations, submitting its own commitments well ahead of time and constructively supporting the overall process. As part of this China also pledged more climate finance in the run-up to the conference. At present most of China's climate finance efforts are pledges rather than reality, yet even these set an example and signal the willingness of the world's largest polluter to take action in principle.

Impacts

• China's shift will put pressure on other emerging economies to soften their stance on climate policy, particularly India.
• AIIB environmental sustainability requirements will affect how development funding is given by other development banks.
• Infrastructure and green businesses in Asia-Pacific will increasingly be able to access Chinese climate funding.
• Developing countries will see an even greater Chinese presence, with Chinese companies heavily involved in implementing climate projects.