GIP renews focus on driving new green investments

The second plenary meeting of the Green Investment Principles (GIP) for the Belt and Road (B&R) in Beijing on Wednesday decided to renew focus on capital mobilisation and driving new green investment flows through regional engagement platforms.

According to a press release issued here, this regional approach emphasised the opportunity for emerging market financial institutions to engage more broadly and deeply with decarbonisation and green investment opportunities in B&R regions.

The meeting was attended by more than 130 representatives from over 40 global financial institutions and international organisations, either in person or via video link. In the past year, the GIP expanded its membership to 37 signatories and 12 supporters from 14 countries and regions around the world.

A three-year plan titled ‘Vision 2023’ was put forward in the meeting. The ‘Vision 2023’ is built on the inaugural annual progress report that was released at the meeting. The report emphasised on climate and environment-related governance and management of sustainability risks, greening of investment portfolios, and consistent approach to disclosures.

The focus areas for the GIP vision were set out under five key pillars – assess, disclose, commit, invest, and grow. “Expectations under the ‘Vision 2023’ include for all members to have made their first TCFD [Task Force on Climate-related Financial Disclosures] disclosures by 2023,” the press release added.

Winners of a set of GIP awards were also announced at the meeting. Three signatories were nominated for each award category. The Standard Chartered Bank received the Best GIP Implementation Award and the Silk Road Fund received the best GIP Green Finance Transaction Award.

Last year, the GIP working groups organised four capacity-building webinars, developed an online tool to measure project carbon emissions, and launched a climate and environmental information disclosure framework for GIP signatories, which is aligned with TCFD recommendations.

“The GIP has made important progress in the past year by expanding its membership, enhancing capacity for disclosure, risk management and product innovation and raising awareness of the importance of sustainability factors in governance,” Dr Ma Jun, co-chair of the GIP Steering Committee and chairman of the Green Finance Committee of China Society for Finance and Banking, told the meeting.

“Facing the Covid challenge and the opportunity brought about by increasing numbers of carbon neutrality pledges by countries, GIP members will have a greater role to play in financing green investments in B&R regions and contributing more significantly to the sustainable development goals.”

Sir Roger Gifford, also co-chair of the GIP Steering Committee, and Chairman of the UK Green Finance Institute, said that through the GIP, investors from China, the UK, and many other countries were taking critical steps to ensure every financial decision they make takes climate change into account.

“Ahead of COP26, we must increase our resolve towards continued progress: supporting more signatories to increase their green investments and make robust disclosures in line with TCFD,” Sir Roger added.

At the meeting, the GIP secretariat reported that it would continue to foster green investment in the Belt and Road region through awareness-raising and capacity-building in environmental risk management, disclosure, and green financial product innovation among its members.