CCICED project launch @CICC 

NRDC and China International Capital Corporation Limited (CICC) kicked off the 2nd phase of the research project “Sustainable Investment Innovation Mechanism” on December 13. This is one of the Special Policy Studies (SPS) for the China Council for International Cooperation on Environment and Development (CCICED). The 1st phase of the project focused on mobilizing large asset owners, particularly pension funds or sovereign wealth funds, to play a more important role in climate finance. The 2nd phase will focus on the capital market in general. While financial support is crucial for green technology innovation, China's green financial market remains banking-dominated with bank loans, which is insufficient to support green technology innovation, a high-risk, high-investment, and long-cycle activity. The study will take a holistic approach to review the green technology financing ecosystem and to explore the potential of multi-level capital markets, including price discovery, risk diversification and the provision of medium to long-term financial services, to better support green technology innovation. The participating experts had a discussion on the bottlenecks that the capital market is facing in financing technological innovation, possible financial product tools of capital market to support technological innovation, and incentives for long-term funds.