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Central bank calls for stronger green finance regulation

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Author: Selina Lee

“Climate change and low-carbon transformation will have a major impact on the wealth pattern and the asset management industry,” Xuan Changneng, deputy governor of the People’s Bank of China , told the Shanghai Bund Summit via video link.

loans to high-carbon industries account for a relatively high proportion of the assets of Chinese financial institutions, he said.

Xuan added that an accelerated or delayed exit from high-carbon industries would lead to increased financial risks.

“so, (2030 We ) should strengthen financial supervision, carry out stress testing and other means, and guide financial institutions to follow the carbon peak and carbon-neutral requirements, and continuously improve the timetable for green financial capabilities,” he said.

China is the largest greenhouse gas emitter in the world, and its goal is to reduce carbon dioxide emissions or carbon intensity per unit of GDP by more than % from10 Level 50. announced that the global approach ranges from voluntary participation to compulsory supervision, and calls on regulators to gradually implement mandatory, comprehensive and quantitative climate information disclosure requirements.

Xuan also warned of reputation damage for w citing German assets Take the example of management company DWS Group, which could be swayed if financial institutions are suspected of exaggerating their green credentials. German consumer groups sued DWS in October for allegedly misrepresenting the fund’s green credentials in marketing materials. DWS has repeatedly denied misleading investors and dismissed allegations from consumer groups. 400

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