{"id":55581,"date":"2021-07-08T15:13:50","date_gmt":"2021-07-08T14:13:50","guid":{"rendered":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?post_type=publication&#038;p=55581"},"modified":"2024-08-16T12:29:06","modified_gmt":"2024-08-16T11:29:06","slug":"financing-chinas-sustainable-urban-transformation","status":"publish","type":"publication","link":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/financing-chinas-sustainable-urban-transformation\/","title":{"rendered":"Financing China\u2019s sustainable urban transformation"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<?xml encoding=\"UTF-8\"><p><em>Author: Jasmine Tillu&nbsp;<\/em><\/p>\n\n\n\n<p class=\"is-style-large\">The low-carbon transformation of China&rsquo;s urban areas is a crucial action towards meeting the Paris Agreement&rsquo;s temperature goal. In this policy insight, Jasmine Tillu addresses how the challenge of financing the transformation may be met. An accompanying insight, <a href=\"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/the-economic-case-for-chinas-sustainable-urban-transformation\"><em>The economic case for China&rsquo;s sustainable urban transformation<\/em><\/a>, is also available.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Main messages<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>For China to meet its climate goals under the Paris Agreement and its 2060 carbon neutrality target, it is estimated that the country needs to spend US$20 trillion over the next three decades across all sectors.<\/li>\n\n\n\n<li>As cities are the primary source of China&rsquo;s carbon emissions, much of this investment is needed in the form of low-carbon and sustainable urban infrastructure.<\/li>\n\n\n\n<li>Decades of rapid infrastructure growth, initially funded through the sale of land use rights and off-budget investment vehicles, have left many municipalities in deep debt. The debt situation has prompted concerns over the long-term ability of cities to sufficiently meet the financing needs of a sustainable transition.<\/li>\n\n\n\n<li>Meeting this financing challenge will require a multi-layered fiscal strategy that empowers municipalities with sufficient financial resources and incentivises low-carbon and sustainable urban investments over the long term.<\/li>\n\n\n\n<li>An important step is to empower cities themselves with the fiscal stability they require. Several well-designed local taxes have been identified by experts that can provide municipalities with additional own-source revenues.<\/li>\n\n\n\n<li>Equally important is to incentivise the existing financial system to prioritise low-carbon and sustainable urban investments.<\/li>\n\n\n\n<li>Cities can also be enabled to make low-carbon and sustainable investments through more efficient data-sharing and coordination and by expanding issuing requirements to include minimum environmental thresholds for special-purpose bond use.<\/li>\n\n\n\n<li>The majority of funding needed for the low-carbon and sustainable infrastructure to meet carbon neutrality goals needs to come from outside of government budgets.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Recommendations<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Develop stable own-source revenue streams at the municipal and provincial levels.<\/li>\n\n\n\n<li>Prioritise the strengthening of systems for data collection and data sharing.<\/li>\n\n\n\n<li>Include minimum environmental thresholds for projects funded by special purpose bonds.<\/li>\n\n\n\n<li>Scale up environmental information disclosure.<\/li>\n\n\n\n<li>Develop a clear taxonomy system for green bonds.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\">\n\n\n\n<p>Jasmine Tillu is a Policy Fellow at the Grantham Research Institute.<\/p>\n\n\n\n<p>This policy insight is based on Chapter 4 of the report <a href=\"https:\/\/urbantransitions.global\/wp-content\/uploads\/2021\/03\/Accelerating_Chinas_Urban_Transition_EN_WEB.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Accelerating China&rsquo;s urban transition: Priority actions for high-quality growth and enhancing leadership for carbon neutrality<\/em><\/a>, the production of which was led by the Grantham Research Institute, the World Resources Institute (USA) Beijing Representative Office, Hong Kong University of Science and Technology, and Tsinghua University. <em>Accelerating China&rsquo;s urban transition<\/em> represents the culmination of a multi-year research programme from the Coalition for Urban Transitions&rsquo; China Country Programme.<\/p>\n\n","protected":false},"excerpt":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<?xml encoding=\"UTF-8\"><p>The low-carbon transformation of China&rsquo;s urban areas is a crucial action towards meeting the Paris Agreement&rsquo;s temperature goal. In this policy insight, Jasmine Tillu addresses how the challenge of financing the transformation may be met.<\/p>\n\n","protected":false},"author":54,"featured_media":55594,"template":"","tags":[154,889,492,896,1085],"publication-type":[1682],"topic_area":[4706],"class_list":["post-55581","publication","type-publication","status-publish","has-post-thumbnail","hentry","tag-china","tag-fiscal-policies","tag-green-transformation","tag-low-carbon-transition","tag-sustainable-finance","publication-type-policy-publications","topic_area-major-emitting-countries"],"acf":{"exclude_from_sync":{"ref_value":"field_560538b0e7350","value":"1","type":false,"post_type":""},"downloads":{"ref_value":"field_52f16cc1a80f2","value":["https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-content\/uploads\/2021\/07\/Financing-Chinas-sustainable-urban-transformation.pdf"],"type":"download","post_type":""},"rss_newsletter":{"ref_value":"field_54f5c2c1544d8","value":"","type":false,"post_type":""},"profile_link":{"ref_value":"field_52f164b5189e9","value":["financing-chinas-sustainable-urban-transformation"],"type":"relationship","post_type":""},"spotlight":{"ref_value":"field_52f80896506d3","value":"","type":false,"post_type":""},"show_translations_widget":{"ref_value":"field_6203d588c41e8","value":"1","type":false,"post_type":""}},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Financing China\u2019s sustainable urban transformation - Grantham Research Institute on climate change and the environment<\/title>\n<meta name=\"description\" content=\"The low-carbon transformation of China\u2019s urban areas is a crucial action towards meeting the Paris Agreement\u2019s temperature goal. 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