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The document reports a surge in China's coal power construction and coal-based steelmaking investments in 2021, contradicting the country's carbon neutrality goals. It highlights that 33 GW of new coal power plants started construction in 2021 and 74 million tonnes of coal-based steelmaking capacity were approved. The report warns that these investments risk creating billions of dollars in stranded assets and lock the sectors into coal dependency, while noting a simultaneous but insufficient scale-up of clean energy.

The document argues that demand-side flexibility (DSF) is essential for integrating intermittent renewables and managing the electrification of transport, buildings, and industry. It highlights that while large industrial users have traditionally provided flexibility, residential and small business consumers have significant untapped potential through assets like electric vehicles (EVs) and heat pumps. Using the UK as a primary example, the brief identifies barriers such as inadequate economic signals and passive consumer behavior, and suggests enablers including smart metering, market reform, and digital aggregation platforms. For China, the authors recommend a 'hybrid approach' combining market-based pricing with administrative scheduling to transition away from a reliance on coal-fired power for system flexibility, while emphasizing the need for pilots to understand consumer preferences.

The document argues that demand-side flexibility (DSF) is essential for integrating intermittent renewables and managing the electrification of transport and buildings. It identifies barriers such as inadequate economic signals and consumer passivity, while highlighting enablers like smart metering, digital aggregation platforms, and the need to align services with consumer preferences. For China, the brief suggests a transition from coal-based flexibility to decarbonised sources, proposing a hybrid approach combining market prices with administrative merit orders to manage distributed energy resources.

China faces significant economic vulnerability to climate-induced floods and heatwaves, with potential cumulative GDP losses between 6.6% and 23.5% by 2048 depending on global warming levels. The eastern and coastal provinces of Jiangsu and Zhejiang are particularly at risk, which could trigger global supply chain disruptions given their role as hubs for electrical manufacturing, cement, and shipping. Projections indicate that river floods could cause cumulative losses of USD 479 billion by 2035, with indirect costs often exceeding direct damages. Additionally, heatwaves are expected to reduce working capacity in key manufacturing regions by up to 2.04% under a >3°C scenario, driven by health-related productivity losses and reduced cognitive performance.

Despite pledges for carbon neutrality, China's power and steel sectors continued to announce coal-based projects in early 2021. While CO2 emissions growth showed signs of cooling in the second quarter of 2021 due to government controls on financial excesses and industrial output, the volume of new coal projects remains high, risking the creation of stranded assets and undermining 2030 emission reduction targets.

Despite a slowdown in emission growth in Q2 2021, China's power and steel sectors continued to announce significant new coal-based capacity in the first half of the year. The report highlights a contradiction between economic growth driven by construction and decarbonization goals, noting that zero-emission power only met 30% of electricity demand growth between H1 2019 and H1 2021. While government measures to control fiscal overspending and industrial output led to a slowdown in CO2 emission growth in the second quarter, the continued announcement of coal-based projects risks creating stranded assets and hindering the transition to low-carbon technologies.

The report examines the green infrastructure landscape of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), highlighting significant investment needs across sectors such as low-carbon transport, renewable energy, and green buildings. It details the role of green finance, specifically green bonds and asset-backed securities, in bridging the funding gap between public budgets and the capital required for climate-resilient infrastructure. The document provides a sample pipeline of 70 green and potentially green projects and offers six strategic recommendations to unlock private capital, including the harmonisation of green definitions and the promotion of local government green bonds.

The Hong Kong green bond market in 2020 saw a record number of deals but an 18% decline in total volume to USD 2.09bn. Low-carbon buildings remained the primary theme for proceed allocations, though waste reached a record high. The market is supported by new government initiatives, including a 2050 carbon neutrality pledge and the Green and Sustainable Finance Grant Scheme. While local issuance is significant, mainland China entities continue to drive the broader green debt market arranged in Hong Kong.

The report examines China's green finance landscape, identifying a significant gap between current investment levels and the estimated USD 1.4 trillion annual investment needed over the next decade to meet 2015 climate and environmental targets. While green credit and bonds saw success during the 13th Five-Year Plan, finance remains heavily dominated by the public sector, with at least 51% of total green finance coming from public sources, primarily Central State Owned Enterprises and state-owned banks. The document highlights barriers for private capital, such as high 'search costs' and limited access to financing channels, and notes that half of the USD 292 billion in energy-related investments to Belt and Road Initiative countries between 2013 and 2019 went to fossil fuels. It recommends increasing the ambition of green standards, improving project pipeline visibility for private actors, and introducing mandatory exclusion lists for high-emission sectors.

The document assesses China's transition toward a comprehensive 'one-permit' governance system for stationary pollution sources, analyzing the legal framework, implementation challenges at the local level, and the role of the Ministry of Ecology and Environment (MEE). It highlights gaps in the current system, such as the exclusion of noise and solid waste from the primary permitting regime and a lack of specific legal liabilities for permit violations. The report compares China's approach with the EU's Industrial Emissions Directive (IED), emphasizing the use of Best Available Techniques (BAT) and risk-based inspection strategies to improve environmental quality.

The report identifies a significant green investment gap in China, estimating an annual requirement of RMB3tn-RMB4tn (USD424bn-USD566bn) by 2030. It highlights the role of green bonds and the impact of local green finance pilot zones in bridging this gap. The document analyzes the regulatory framework, the potential for 'new infrastructure' projects post-COVID-19, and the need for global harmonization of green definitions to attract international capital.

In 2019, China led the world in labeled green bond issuance, with 386.2 billion RMB (55.8 billion USD) issued, a 33% increase from 2018. The market saw a significant rise in non-financial corporate issuers and the introduction of the first labeled green municipal special bond. While the market is growing, a gap remains between domestic Chinese green definitions and international standards, particularly regarding the use of proceeds for general corporate purposes and the inclusion of 'clean coal' projects. The report highlights the potential for refinancing as 88% of the domestic green bond balance is set to mature within five years.

The Hong Kong green bond market in 2019 saw a slight decrease in issuance by domestic entities to USD 2.6 billion, but achieved greater issuer diversity and the launch of the first government green bond. Low-carbon buildings dominated proceed allocations at 61%. The market is increasingly characterized by local currency denomination and a strong connection to the Greater Bay Area, with total GBA-domiciled issuance reaching USD 6.4 billion. Regulatory bodies like the HKMA and SFC have introduced measures to enhance ESG disclosures and sustainable banking frameworks to bolster the city's status as a regional sustainable finance hub.

The report analyzes China's green bond market in Q3 2018, noting a total issuance of USD 8.5bn. It highlights that while total issuance for the first three quarters of 2018 (USD 21.5bn) exceeded the same period in 2017, only 49% of Q3 volumes aligned with international definitions. Financial corporates dominated issuance, and renewable energy remained the largest sector for proceeds. The document also details new regulatory guidelines from the PBoC, SSE, and CSRC, and updates to the Climate Bonds Initiative (CBI) taxonomy regarding utility tunnels and hydropower.

The document outlines six key actions for regional governments to decarbonize mobility: expanding electric vehicle (EV) charging infrastructure, electrifying commercial and government fleets, implementing clean vehicle manufacturing standards, improving freight delivery efficiency, investing in public transit, and promoting non-motorized travel alternatives.

The report analyzes the current state of soil pollution in China and evaluates several financing models for remediation, including 'Remediation + Development', 'Polluter Pays', Public-Private Partnerships (PPPs), green bonds, industrial funds, and the 'land ticket' system. It highlights a significant funding gap, noting that while the market is growing, the costs of remediation—potentially reaching dozens of trillion yuan—far exceed current government allocations. The document identifies critical barriers such as unclear historical pollution responsibility, a lack of specialized soil pollution laws, and the high risk and low return of remediation projects. It recommends transitioning from purely government-funded models to diversified, mixed-fund structures that leverage social capital and innovative green finance instruments.

The China Green Bond Market Mid-Year Report 2018 details a 14% year-on-year increase in green bond issuance from Chinese issuers in H1 2018, totaling USD 13.02 billion. While financial and non-financial corporates drove growth, 28% of total issuance failed to align with international green bond definitions, primarily due to allocations to general working capital. Renewable energy remained the largest sector for proceeds, and over 40% of issuance occurred offshore, led by ICBC. The report also highlights new regulatory measures from the PBoC and the launch of a Green Bond Issuance Programme in Hong Kong.

The report finds that while most legal ivory stores complied with the phased shutdown of the domestic market, illegal trade persists through physical outlets, websites, and social media. Physical illegal markets have seen a decline in the average number of items per outlet since 2007, but trade has shifted toward second-tier cities and encrypted social media platforms. Prices in illegal markets remain significantly lower than in legal markets, and there is a noted lack of clear government policy regarding the management of unsold ivory stockpiles following the ban.

The report details the expansion of China's green bond market in H1 2017, highlighting a 33.6% year-on-year growth in issuance and a shift toward more diverse issuers. It examines the alignment of these bonds with international standards, the impact of new domestic policies, and the potential for green municipal bonds to drive local low-carbon transitions.

The report analyzes the fragmented state of Chinese logistics, where low barriers to entry and poor regulatory enforcement lead to overloading and low truck utilization. It argues that improving efficiency could save the Chinese economy up to RMB 1T annually and prevent freight emissions from growing from 4% to 16% of total CO2 emissions. The document proposes five key solutions: logistics information platforms, best-practice sharing mechanisms, equipment standardization, urban logistics master planning, and tax/toll reform.