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The report identifies China as the world's largest methane emitter and explores how sustainable finance can bridge the investment gap for abatement. It highlights the 2025 NDC update as a critical window for action and recommends the integration of quantitative methane targets, expanded green taxonomies, and the inclusion of methane in the national emissions trading system to mobilise the estimated USD 7.7 billion in annual investment needed.

The report examines how transition finance is being leveraged to decarbonise China's steel industry, focusing on the impact of the first subnational regulatory framework introduced in Hebei Province in December 2023. It finds that the market responded quickly to these guidelines, with steel transition loans in Hebei exceeding CNY20bn (USD2.8bn) by the end of 2024. The document estimates that the sector requires at least USD18bn in capex over the next five years to invest in electric arc furnaces (EAF), direct reduced iron (DRI) shaft furnaces, and electrolysers. While large state-owned enterprises lead in transition planning, smaller firms face greater financing gaps. The report recommends that the People's Bank of China introduce further incentives, such as interest subsidies, and that steel companies secure offtake contracts to improve the bankability of green steel projects.

The report argues that for China's power sector to meet its 2030 peak emissions and 2060 carbon neutrality targets, electrical utilities must develop credible, science-based transition plans. These plans serve as the foundation for transition finance instruments, such as Use of Proceeds (UoP) bonds and sustainability-linked bonds (SLBs). While China is a major global issuer of SLBs, the report notes a lack of alignment with rigorous standards, as many domestic issuers focus on renewable energy capacity rather than comprehensive greenhouse gas (GHG) emission reduction targets. The document provides a framework for utilities to develop transition plans and select appropriate financial tools to support low-carbon development, including the retirement of coal assets and grid optimisation.

In 2023, Hong Kong's aligned GSS+ debt volume grew by 236% to USD 18.2 billion, driven primarily by the HKSAR Government's green bond issuance. The market is characterized by a strong preference for green-themed debt, with low-carbon buildings and land use as the primary use-of-proceeds categories. While the HKSAR Government dominates the local market, the Hong Kong Stock Exchange remains a key hub for offshore Chinese green bonds. The report also highlights the emergence of transition finance frameworks in mainland China and the introduction of the Hong Kong Taxonomy for Sustainable Finance to improve interoperability with international standards.

In 2023, China maintained its position as the world's largest green bond issuance market, despite a slight decline in total volume. The market is characterized by a strong preference for short-dated debt and a growing reliance on Second Party Opinions to enhance credibility. While green bonds are increasingly aligned with the 100% Use of Proceeds (UoP) rule, social and sustainability bonds face challenges with transparency and disclosure. Sustainability-linked bonds (SLBs) are prolific in number but rarely utilize greenhouse gas (GHG) reduction targets. Policy drivers include the China Green Bond Principles and the China-EU Common Ground Taxonomy, alongside emerging local transition finance guidelines for hard-to-abate sectors like steel and chemicals.

The 2021 research indicates a slight rebound in ivory purchases compared to 2020, though levels remain below 2019. While the 'Rejectors' segment remains the largest, 'Diehard Buyers' have increased in number despite a drop in their actual purchase rates. The report finds that combining knowledge of the ivory ban with targeted campaign videos, such as the Ma Weidu campaign, significantly reduces the intention to purchase ivory even among the most persistent buyers.

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 finds that self-reported ivory purchase in the past 12 months reached a four-year low of 12% in 2020. While the 'Diehard Buyers' segment has shrunk from 14% to 8% of the population, those remaining are more persistent, with higher purchase rates and a stronger belief in ivory's artistic value. Conversely, 'Rejectors' have grown to 72% of the sample. The study highlights that while 88% of participants believe ivory trade is illegal, spontaneous awareness of the specific 2017 ban has declined. The Ma Weidu campaign showed strong resonance, particularly among 'Diehard Buyers' and regular overseas travelers, with 74% of future intenders changing their minds after exposure to the ban and the campaign video.

The document analyzes China's heavy reliance on fossil fuels, particularly coal, and the fiscal implications of this dependence. It details the structure of government revenues from fossil fuels, the influence of state-owned enterprises, and the prevalence of subsidies. While China has implemented policies to reduce coal overcapacity and peak emissions by 2030, it continues to provide significant subsidies and finance fossil fuel projects internationally through the Belt and Road Initiative.

The research identifies three consumer segments: Rejectors (50%), Ban Influenced Citizens (31%), and Diehard Buyers (19%). While the 2016 ban significantly reduced future purchase intentions from 43% to 18% among the total sample, Diehard Buyers remain persistent, driven by social status and traditional beliefs. The study found that ivory trade is shifting from Layer 1 to Layer 3 cities and that Millennials are a key growth driver, purchasing ivory more frequently online. The most effective deterrent messages are those focusing on endangered elephants and strict legal penalties.

The report utilizes the "window of opportunity" framework—examining context, champions, concerns, and complementary policies—to analyze coal phase-outs in California, Denmark, France, and Beijing. It highlights how resource endowment, international climate commitments, and public health concerns drive reform. For Beijing, the report details the closure of coal mines and power plants, the role of central and local government coordination, and the impact of high-profile events like the Olympics and APEC summit in accelerating the transition. It concludes that successful nationwide phase-out in China requires viable energy alternatives, social protection for workers, and high-level political leadership supported by grassroots demand.

The guidelines focus on three categories: urban form, transportation, and energy and resources. They aim to reduce pollution, congestion, and carbon emissions while improving economic vitality and livability through specific benchmarks for urban growth boundaries, transit-oriented development, mixed-use zoning, and resource efficiency.

The 'Green and Smart Town Development Guidelines' by China Development Bank Capital outlines 12 measurable green guidelines across urban form, transport, and energy/resources, alongside six smart city strategies. The guide aims to reduce urbanization costs from 8.6% to 6.8% of GDP by implementing compact development, transit-oriented design, and resource efficiency. It provides specific benchmarks, such as limiting block sizes to 2 hectares and requiring 70% of buildings to meet MOHURD one-star green standards, supported by international case studies from Portland, Stockholm, and Copenhagen.

The report examines China's transition from a flat residential electricity pricing system to a tiered electricity pricing (TEP) system. It analyzes the reform's design, the role of provincial governments in setting price ladders, and the resulting impacts on different income groups. The document highlights the challenges of balancing operational feasibility with accuracy, the need for transparency in cost structures, and the use of compensation measures for the poorest households.

The document presents a framework for achieving clean air in China, emphasizing the need for a robust air quality management system, the application of Best Available Control Technologies (BACT), and the alignment of fiscal policies with pollution goals. It advocates for the removal of fossil fuel subsidies, the implementation of a coal cap to reduce coal's share of the energy structure to less than 50% by 2030, and the adoption of Euro 6 fuel standards by 2018 for heavy-duty trucks and off-road vehicles. The experts highlight that integrating air pollutant and greenhouse gas reductions is more cost-effective than treating them separately.

The report examines the potential for China to use revenues from a national emissions trading scheme (ETS), expected by 2016, to fund renewable energy. While experts agree that earmarking is feasible, they suggest that funds should target less mature technologies like tidal and geothermal power rather than established wind and solar PV, which are already well-financed. Short-term revenues from auctioning allowances are expected to be small, but long-term potential exists if political will remains constant. Governance challenges include the need for transparency, the harmonization of monitoring, reporting, and verification (MRV) rules across regions, and the decision between centralizing or localizing fund management.

The document analyzes three Chinese national pilot programs for industrial parks: Eco-industrial Parks (EIP), Circular Transformation of Industrial Parks (CTIP), and Low-carbon Industrial Parks. It compares their administrative processes, performance indicators, and contributions to carbon reduction, noting that while these programs are voluntary, they provide significant financial and capacity-building incentives for parks to transition from growth-oriented to environment-balanced models.

The report examines China's effort to transition its industrial sector—responsible for 70% of energy consumption and 72% of carbon emissions—through three primary pilot programs: the Eco-Industrial Park (EIP) Demonstration Program, the Circular Transformation of Industrial Parks (CTIP), and the Low-Carbon Industrial Park Program. While these programs overlap in their goals to reduce pollution and resource scarcity, they differ in governance and metrics. The EIP program uses a rigid set of threshold values, whereas the CTIP program allows zones to set their own targets and provides direct national financing, averaging RMB 182 million per zone. The Low-Carbon Industrial Park Program, launched in 2013, specifically targets greenhouse gas (GHG) emissions. The report concludes that while these voluntary schemes help build technical capacity and attract investment, they often lack comprehensive life-cycle assessments and clear guidance for participating firms.

The report analyzes the evolving policy landscape for low-carbon development in China's industrial zones, highlighting a shift from rigid command-and-control regulations toward more flexible economic instruments and performance standards. It examines the role of the 12th Five-Year Plan and the cascading effect of national directives from the State Council and NDRC to provincial and municipal levels, specifically focusing on regional emissions trading pilots and the increasing importance of GHG inventories and auditing.