On June 18, the 2026 Lujiazui Forum commenced. China International Capital Corporation Limited (CICC) Chairman and Management Committee Chairman Chen Liang attended and delivered a speech at the "Plenary Session 8: Sustainable Finance Innovation and Cooperation under the Global Governance Framework".
Key Timing and Significance
Chen Liang stated that promoting sustainable finance innovation and cooperation under the global governance initiative is both timely and highly significant. On one hand, global governance currently faces three major challenges: first, intensifying geopolitical competition, regional conflicts, and volatility in energy markets have elevated countries' focus on energy security to an unprecedented level; second, the deepening impacts of climate change and frequent extreme weather events are increasing the urgency for a global green and low-carbon transition; third, the rapid development of the artificial intelligence industry is placing new demands on global energy supply and power infrastructure. Promoting the green transition and developing a green economy have become a broad consensus within the international community.
Emerging Financing Challenges
On the other hand, the global green transition is confronting new financing challenges. Essentially, the green transition requires large-scale, long-cycle capital investment. However, against the backdrop of a rising global interest rate environment, most countries face high financing costs, with funding constraints being particularly acute for developing nations. Simultaneously, fiscal space in various countries is continuously narrowing, the supply of international public funds from entities like multilateral development banks is relatively limited, and coupled with factors like trade frictions and energy shocks, cross-border capital flows to developing countries are also under pressure. How to provide more stable green financial support has become an urgent issue within the global governance framework.
China's Commitment and Capabilities
Chen Liang pointed out that China will contribute greater strength to further advancing the global green transition and sustainable development. Over the past decade, China's green technologies have developed rapidly, benefiting the globe, while a relatively comprehensive green financial system has also been established. Both the green credit and green bond markets rank among the largest globally.
"In the future, China's green finance not only has the capacity to support its own development needs but also the conditions to better support the global green transition and sustainable development by providing more green finance public goods," Chen Liang said.
Proposed Pathways for Contribution
First, strengthen capital connectivity by using innovative instruments like green panda bonds to provide low-cost, long-term RMB financing for overseas green projects. Currently, many developing nations have immense infrastructure development needs but commonly face challenges of high financing costs and insufficient long-term capital. China possesses a vast supply of green funds and a mature capital market. Through tools like green panda bonds, it can effectively connect the advantages of domestic capital with the needs of overseas green projects, thereby enriching global green financing channels.
Second, strengthen standards connectivity by promoting mutual recognition and interoperability of sustainable finance taxonomies to reduce the institutional costs of cross-border green investment. Green finance requires not just capital connectivity but, more importantly, rules connectivity. In recent years, China has actively promoted the coordination of international sustainable finance standards. It has co-initiated the development of a multilateral Common Ground Taxonomy with the EU and Singapore, aiming to establish a common language for green standards across different markets and enhance the convenience and transparency of cross-border green capital flows.
Concluding Vision
Finally, Chen Liang expressed that looking ahead, he believes China's green finance can not only export capital but also provide rules, experience, and market-linking capabilities, offering more Chinese solutions for the global green transition.
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