The financial sector and—especially—financial institutions have a pivotal and fundamental role to play in stimulating system-wide change to catalyze decarbonization across sectors. Large amounts of capital are required to transition to a low-carbon economy. In China’s energy sector alone, approximately US$20 trillion of new investments in clean energy infrastructure is required to achieve the 1.5 ℃ target. The quickly falling value of high-carbon assets is an increasing threat to the financial sector and must be understood as a financial risk that falls within the remit of financial institutions. Deeper efforts are needed to disentangle current financial policy frameworks and economic interests from high-carbon activities, thereby triggering a shift that accelerates changes to the energy system in the coming decades.

  • We support financial institutions to develop carbon stress test models in the most exposed sectors

  • We facilitate the efforts for carbon-related information disclosure by financial regulators

  • We help financial institutions to mainstream climate-related financial risk management

We look to drive impact in three ways:

  • Build a more sustainable and stable financial system

  • Accelerate low-carbon transition to help China achieve carbon neutrality by 2060

  • Catalyze sustainable growth and a just transition