Cooperation between China and Britain, especially in finance, can help accelerate the transition to a greener future for the whole world, Vincent Keaveny, lord mayor of the City of London, has said.
"Climate change has come ever more to the fore in our work with Chinese firms in the last few years," Keaveny told Xinhua during a recent written interview. "China is well aware of climate change and the need to lower its emissions."
"The country has a difficult path to tread in balancing growth and reducing reliance on fossil fuels, but I am confident that it can succeed," he said. "We know this all too well through our work with Chinese partners in the UK-China Green Finance Taskforce, which continues apace in the wake of COP26."
On the market front, Keaveny noted that many Chinese institutions have utilized the platform offered by the London Stock Exchange to list sustainable bonds.
"We have seen strong commitments from Chinese financial institutions supporting the green agenda," he added. "We welcome opportunities to work with Chinese financial institutions in supporting green investment into the UK and vice versa."
China and Britain enjoy a long-standing partnership on green finance, the mayor told Xinhua. The two countries co-chaired the G20 Green Finance Study Group in 2016, and this Britain-China partnership "has grown significantly since," he added.
According to Keaveny, the UK-China Green Finance Taskforce, established in 2017, is led by the City of London Corporation and the China Green Finance Committee, and since then much work has been done.
Over the years, the mayor said, the taskforce has led the discussions on voluntary guidelines on green Belt and Road investment for Chinese and British investors and research on measures to promote green asset securitization in China and Britain, conduct pilot projects on environmental information disclosure consistent with the Task Force on Climate-related Financial Disclosures recommendations by financial firms in both countries, and encourage investment management industry in both markets to allocate further sustainable assets.
On top of green finance, Keaveny also talked about China's opening-up, as London has become the world's leading offshore RMB trading hub.
"The RMB currency has also grown in importance since China opened up to the world in 1978. The World Bank SDR basket inclusion in 2016 was a big step for the currency," he said.
"In the long run, few will deny that the RMB is set to become a more important player on the world stage," he noted. "As the largest RMB offshore clearing center outside of Greater China, London will continue to grow its RMB business here."
Noting that an increasing number of Chinese financial and professional services firms are locating in Britain, especially in the City of London, Keaveny said economic links between China and Britain support well over 100,000 British jobs.
According to the mayor, the Shanghai-London Stock Connect has played an important role in bilateral cooperation. "We're the leading offshore center for RMB outside of Greater China and also a venue of choice for Chinese firms wanting to raise capital, thanks in part to the London-Shanghai Stock Connect," he told Xinhua.
"The Shanghai-London Stock Connect was one of the most highly anticipated bilateral initiatives in recent years, deepening UK-China financial cooperation and expanding access to China's capital markets," Keaveny said. "It's welcome that four Chinese firms have listed. I want to see more firms--from both sides--sign up."
"Linking one of the world's largest capital markets with one of the world's most international financial centers is good news for the UK, China and the wider global economy. It means global investors can now benefit from China's growth through London, while UK listed companies are able to access Chinese investors directly," he said.
Editor: Galia
