Name? Yi Gang
Westphalian identity? Chinese
Age? 62
Why is he in the news? As Governor of the People’s Bank of China (PBOC), Yi recently stated that he plans to finance President Xi Jinping’s goal of carbon neutrality by 2060. The money had to come from somewhere and Xi is not known for taking no as an answer…
Why do we care? Because it’s going to take a lot more than paper straws and reusable bags to slow down climate change and take care of our planet. It’s going to take big commitments from bigger wallets.
Why should you care? Because you want to live past 2060? And because Chinese investments have long-lasting impacts on almost every region of the world? Most likely yours as well…
Who else cares? The European Union aka Ursula von der Leyen. As the first major power to declare its goal of carbon neutrality by 2050, the Union has kickstarted a race for the technology which will enable large industrial countries to reach such a goal. And as we’ve said before, where there is money to be made, there is politics to be had: Joe Biden is also interested in joining this race of who will make the most profits off climate neutrality, Realism at its best.
Any further comments? The potential mandatory requirements that Yi would like China’s central bank to adopt would help to promote sustainable green economic activity both at home and abroad. In China, financial institutions would fund the shift from coal mining towards greater reliance on wind and solar energy. Outside of China, these new requirements could potentially result in greater green bonds and green loans for manufacturing technology and infrastructure in developing countries. In other words, as China sees success with green financing (in nine pilot cities so far), it’s likely to take that same approach and technologies to places that most benefit the PBOC; e.g. countries along the BRI.
