Remarks by Ms. Beate Trankmann at the 2024 Green Investment Conference
August 29, 2024
![a woman holding a sign posing for the camera](/sites/g/files/zskgke326/files/2024-08/screenshot_2024-08-29_at_4.45.26_pm.png)
UNDP Resident Representative in China, Beate Trankmann, delivered remarks virtually at the 2024 Green Investment Conference held in Weihai, Shandong.
尊敬的陈元副主席、马蔚华主席,山东省和威海市的各位领导,
大家早上好.
I’m delighted to speak at the 2024 Green Investment Conference to discuss the crucial role of green investment in sustainable development, and China's low carbon progress.
The world is dangerously off-track in achieving the Sustainable Development Goals, to end poverty and protect our planet by 2030. Instead, we are on the brink of climate catastrophe. The World Meteorological Organization warns there is an 80% chance that global average temperatures will exceed the 1.5-degree limit within the next five years.
To avoid the worst impacts of climate change and keep Paris Agreement targets within reach, global emissions must peak by next year and decrease by 43% by 2030. This requires collective and urgent actions from all countries, especially the largest emitters.
How can we achieve this? The path ahead is clear. Countries must accelerate decarbonization of their energy systems and economies, transitioning from fossil fuels to renewable energy. And mobilize capital from diverse sources, at scale, to enable this.
China is a leader in both areas, with great potential to help bridge global technology and financing gaps for climate action.
China is driving low-carbon energy supply. In 2023, it is estimated to have accounted for nearly 60% of global renewable energy capacity additions, and is on track to triple its capacity by 2030.
China’s green finance market has grown rapidly since 2016 and continued to be the world’s largest green bond market in 2023. Across the country, we also see various innovative efforts to mobilize green finance. For instance, the establishment of the Shandong Green Development Fund sets an example in catalyzing private capital to develop climate-friendly infrastructure and businesses.
UNDP is working closely with China to support its low-carbon transition, by providing new tools and evidence-based research. Last year, we released the SDG Investor Maps, a market intelligence tool identifying investment opportunities with high development impact in renewable energy and the circular economy. More recently, we launched a report identifying opportunities and challenges in financing the low-carbon transition of China’s agri-food system.
"To avoid the worst impacts of climate change and keep Paris Agreement targets within reach, global emissions must peak by next year and decrease by 43% by 2030. This requires collective and urgent actions from all countries, especially the largest emitters."
Going forward, I have two recommendations to further advance the low-carbon transition, in China and globally.
Firstly, we must fully consider the links between climate mitigation and biodiversity conservation, ensuring that progress in one area does not come at the cost of the other.
Biodiversity plays a crucial role in climate change mitigation and adaptation, through the ecosystem services it supports. That’s why UNDP with support from the Global Environment Facility has worked with the Shandong Provincial Government to help restore wetlands in Dongying, which act as important carbon sinks and serve as a conservation site for endangered migratory birds.
Given the significant financing gap for biodiversity conservation, through our BIOFIN initiative, we’re also working with the Department of Ecology and Environment in Shandong to align public and private finance with biodiversity goals so that investments strengthen, rather than undermine, nature.
The private sector is crucial in this effort. We call on more companies to consider investing in biodiversity conservation, through public-private partnerships (PPP). Doing so can not only benefit brand image, sales and ESG reporting but also long-term risk management. Because when more than half of global GDP depends on nature, no business can be viable in future without it remaining in-tact. Failure to ensure this will cost the world $58 trillion – a planetary bottom line no business can afford to miss.
The next generation of Nationally Determined Contributions under the Climate Paris Agreement that all countries are requested to submit at COP30 next year are an important opportunity to fully include biodiversity considerations into climate targets. With China having made commendable progress in both areas, it can lead by example for other countries to follow.
Secondly, to sustain the green transition and secure strong public support, it is crucial that the transition is inclusive and fair on those most affected by it. To finance a just transition, China could further enhance its financial architecture and pilot innovative financial tools, ensuring that social factors, alongside environmental considerations, are central to investment decisions.
To support this, UNDP China has developed an SDG Taxonomy to incorporate social considerations into bond issuance. Our SDG Impact Standards are now guiding businesses and investors worldwide, to embed sustainability and the SDGs into their management systems, driving greater impact. UNDP will continue to engage with a wide range of stakeholders, pooling resources for green investment and the low-carbon transition. We look forward to working with all of you towards a sustainable future – delivering returns on investments in the green transition, for generations to come.
Thank you, and I wish this conference every success!