As an active response to China’s goal of “achieving carbon neutrality by 2060” set by Chinese President Xi Jinping and in order to discuss the opportunities for China-Europe policy, business and technology cooperation under the new situation, Seminar on Investment Outlook for the Low Carbon Transition in Europe in the Age of COVID-19 and China-Europe Climate Finance Collaboration Opportunities were successfully held online on October 9. Jointly sponsored by Climate Investment and Finance Association, CECEP Consulting Co., Ltd., the University of Edinburgh Business School, the Bartlett School of Construction and Project Management of University College London, Green Development Institute of Beijing Normal University, Department of Earth System Science of Tsinghua University and School of Environment of Tsinghua University, the seminar was presided over by Guan Dabo, Professor of Department of Earth System Science, Tsinghua University and Fellow of Academy of Social Sciences.

D'Maris Coffman, Professor in Economics and Finance of the Built Environment of the Bartlett School of Construction and Project Management, University College London and Director of Climate Investment and Finance Platform for Promoting Ecological Civilisation (CIFE), delivered a speech themed on Investment Outlook for the Low Carbon Transition in Europe in the Age of COVID-19.

After that, Professor D'Maris Coffman discussed Climate Finance Collaboration Opportunities Between Europe and China together with Zhang Jiutian, Executive Director and Researcher Fellow of Green Development Institute of Beijing Normal University, Wang Can, Professor of School of Environment and Chair of the Department of Environmental Planning and Management of Tsinghua University, and Liang Xi, Senior Lecturer in Energy Finance of Business School  at the University of Edinburgh and Standing Committee Member of Climate Investment and Finance Association of Chinese Society for Environmental Sciences.

Guan Dabo: In terms of business and technology, what are the opportunities for China-Europe cooperation in climate investment and finance?

D'Maris Coffman:

In terms of technology, the UK is currently engaged in a series of international cooperation. China has a lot of practical experience in the application of new technologies, and I hope that the UK can learn from it.

Further research and international cooperation can be carried out in the fields of afforestation, reforestation and agricultural restoration. I think one of the more critical areas is the mitigation of the impact of climate on the sea. The sea has already suffered a lot from climate change, and we need to invest in this area.

Zhang Jiutian:

China and Europe have carried out extensive cooperation in the field of climate and achieved fruitful results. In the future, China needs to take more measures to deal with climate change. There is a wide space for China-Europe cooperation like in the commercialisation and innovation of low-carbon technologies such as CCUS, electric vehicles and innovative business models. All these cannot do without the support of climate investment and finance.

In addition to climate mitigation and low-carbon technologies, China and Europe need to focus on another two aspects in the field of climate investment and finance: climate adaptation and tripartite cooperation, in which there is a lot of room for China-Europe cooperation.

Wang Can:

Both China and European countries have put forward long-term carbon neutrality strategies, which will bring a large market for China-Europe technological and commercial cooperation.

Energy efficiency, zero carbon energy technologies (such as new and renewable energies) and negative emission technologies will play an important role in achieving the goal of carbon neutrality. We need more ways to develop and promote these technologies. China has a large demand for new products and technologies in terms of climate mitigation.

The climate policies of China and Europe will enable greater market potentials and more opportunities.

Liang Xi:

At the technological level, there are many technologies that can be applied to low-carbon sectors in Europe and China, such as electrification, hydrogen energy storage, circular economy and carbon capture and storage technology. China and Europe can carry out cooperation in a number of fields of climate change, such as investment in urban infrastructures and application of intelligent technology in the field of climate adaptation. In terms of technology, we need to distinguish between commercial technology and near commercial technology, and concentrate on the development of some advanced and highly potential technologies such as negative emission technology, CCUS and advanced energy storage technology.

Mutual trust is very important in technological cooperation. We need to think about how China and Europe can benefit from technological cooperation.

Market mechanism will play an important role. Venture capital, public and private capital will promote the application of technologies.

At the business level, venture capitalists have a lot of investment opportunities in low-carbon technologies. We need to shift our focus from traditional energy values to low-carbon resources. In terms of climate information disclosure, enterprises need to disclose climate related information, including climate risk information.

Guan Dabo: What are the potential areas of policy cooperation that can help China and Europe achieve the climate goals?

D'Maris Coffman:

China and Europe have different ways to deal with climate change. Before COVID-19 pandemic, Europe has been taking a low growth path. But judging from the pandemic, it is unrealistic to respond to climate change in a low growth way. We need to explore a high growth path to address climate change through a global partnership.

Zhang Jiutian:

It is challenging to achieve the goals in carbon neutrality. There are distinct differences between carbon peaking and carbon neutrality. Carbon peaking is the deviation of the existing path, while carbon neutrality is the reconstruction of economic and energy systems.

China and European countries have clearly defined respective goals in carbon neutrality. The two sides can cooperate in the following three areas:

1. Balancing the relationship between carbon neutrality and economic development;

2. Sharing carbon neutrality strategies and paths, and enhancing mutual understanding and knowledge sharing;

3. Technology policies, especially low-carbon technologies such as CCUS and negative emission technologies.

Wang Can:

China’s goal of achieving carbon neutrality by 2060 will promote low-carbon transformation.

Technology plays an important role in mitigation and economic growth. Among the policies of China and Europe, technological cooperation projects such as the establishment of technological cooperation platforms are of top priority.

We need to strengthen economic and trade exchanges and cooperation between China and Europe.

We are now in the transition from low carbon to carbon neutrality, and there is a difference between the two. The goal of the latter is clearer, and we must enable the carbon market to play a role in achieving carbon neutrality.

To promote the construction of the climate investment and finance system, we need to carry out international cooperation in the following aspects: how to establish the climate investment and financing mode to mobilize the flow of private capitals to the field of climate change, how to adopt climate project standards recognized by both China and Europe, and how to design risk assessment models and tools, etc.

Liang Xi:

China and Europe have carried out extensive cooperation over the years. In the future, the two sides can continue to cooperate in the following fields:

First, the implementation of policy objectives. The experience of China-Europe cooperation can be strengthened in the following aspects: learning from how Europe combines its overall objective with those of EU Member States, how to monitor the implementation of the goals, and how China can achieve carbon peaking; high-level cooperation. EU Member States and Chinese provinces can carry out relevant cooperation.

As one of the series of academic salons on climate investment and financing, this seminar aims to promote academic exchanges in climate investment and finance, promote the formation of a good research atmosphere and facilitate international cooperation in climate investment and finance.