on the afternoon of october 18, mr. zhao lijun, chairman and ceo of poten environment group co., ltd. (hereinafter referred to as “poten enviro”) and president of china environment chamber of commerce, attended the phoenix international forum 2016 as a representative of environmental protection enterprises. at the forum, he held discussions with other attendees about the global climate governance and the opportunities brought by green development for china.
thanks to the innovation-driven reform, the green future will arrive sooner than expected.
the pairs agreement is about to take effect, which will greatly influence where the world will go in the future. due to the sluggish economic outlook, many people are pessimistic about the green development. but in my view, the proposal of green development concept is set to be an important reform for the entire mankind.
environmental problems are mainly attributed to humans’ extensive utilization of energy and resources in the past. the strict policies on environmental protection should be adopted to push forward the industry industrial transformation and the upgrading of energy structure. economically, excess production capacity will be phased out to reduce the consumption of resources and optimize the industry structure. from the perspective of development, motivations for technological advance will be inspired and a more intensive growth pattern will come into being.
renewable energy accounts for more than 50% of sweden’s total energy resources. waste-to-energy plants generate electricity and heat for 250,000 local households and heat for 950,000 local households, respectively. in developed countries, new energy is being promoted as an emerging trend. technological advance can positively impact economy and bring changes to lifestyle sooner than we expect. therefore, it is absolutely fair for us to pursue green development with adequate confidence.
inclusive green finance is expected to fuel the growth of eco-friendly enterprises.
green development has brought huge opportunities to the chinese environmental protection industry. the measures taken to handle the environmental problems have greatly propelled the industry towards rapid growth and thus played an increasingly important role in china’s drive for green development.
gaining more popularity, the environmental protection industry needs more financial support from the finance, especially green finance which can provide the much-needed financing needs over long period. even though china has become the largest green bond issuer in the world, its relevant policies on green finance are facing some challenges in application.
among the approved rmb31.9 billion green corporate bonds, only rmb800 million went to the private listed companies and rmb300 million to the private non-listed ones while the remaining all flowed to the state-owned enterprises (soes). it is well known that soes fall short of advantage in assets efficiency. but due to the influence of ownership system on credit ratings, soes have much more access to the issued green bonds.
companies need to be rated and guaranteed before issuing bonds. but the highest credit rating for a non-listed or non-state-owned market entity is usually up to aa-. what’s worse, unlike traditional projects, environmental protection ones lack collaterals which are necessary for being guaranteed. for instance, upon the completion of a river regulation project, the water quality was improved but no calculable assets were left. these challenges deny the high possibility of bond issued by environmental protection enterprises the high possibility of bond issuance.
after overcoming a host of difficulties, poten enviro managed to issue an aaa green corporate bond, first of its kind issued by a private non-listed company in china. the bond was well received among investors and registered a nominal interest rate even lower than that of soes. this reveals that the capital market has sufficient confidence in the environmental protection industry and private companies.
with the guidance of relevant policies, the green finance is expected to serve the development of the environment protection industry, thus highlighting its green nature. resources will be diverted to the most dynamic part of an industry. being eco-friendly or not will ultimately determine whether a project can win the support of green finance.
pursuit for high-quality life is the biggest motivation for green development.
in addition to the industry strength, green development also requires the participation of the public. one can feel that individuals’ spending habits and lifestyles contain great power which will boost the green development and impact the macro situation so greatly that we cannot afford to ignore. the motivation needed by green development just lies in everyone’s pursuit for better life.
while yearning for better lifestyles and quality products, consumers are pushing forward the reform on supply front for quality and green development, which in turn will fuel the technological advance and industry upgrading and contribute to the high-quality development and supply.
environmental protection is in conformity with human development. green development will be bound to create cleaner environment and better lifestyle for china and even the entire world.
phoenix international forum 2016: dialogue with the world
at the phoenix international forum 2016: dialogue with the world co-hosted by ifeng.com and phoenix satellite television, mr. zhao lijun exchanged views on the global climate governance and the opportunities brought by green development for china with mr. li junfeng, director of the national center for climate change strategy and international cooperation (ncsc), mr. wang yi, member of the national people’s congress standing committee and deputy director of institutes of science and development, cas, mr. yu hongyuan, dean of public policy institute, shanghai institutes for international studies, and others. (source: news center of the strategic development department of the group)