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mediums and innovation of financial instruments (including credit,
bonds, equity, risk sharing, etc.)
• Actively making use of the international capital is also an important
means for cities to facilitate low carbon financing. The significance
of international funds for cities lies in the international management
and operation experience brought for local government and local
financial institutions by relevant cooperation programmes and
capital use rather than limited to the funds. With the technical
assistances brought by funds, the city’s knowledge and business
competence in energy-saving technology and low carbon industry
have also been improved. The local government should strengthen
the cooperation and communication with other countries and
funding authorities so as to earn more support such as loans for
low carbon programmes, grant and cooperation, etc. Besides, the
local government should improve its own investment facilitation in
the low carbon economy sector that suits its own development, and
adopt various facilitation and favourable policies to attract more
investment that may facilitate the local low carbon economy.
This chapter only analyses the financing issue with cities to facilitate
low carbon economy as a whole; it is necessary to make the analysis
on specific feasibility with regard to different city conditions and
instruments. At the same time, we would like to stress the following
aspects: firstly, the innovation of low carbon financing instruments
and financing capacity of local government are closely related to
central policies. Only stable, definite, and anticipated policy signals
and development direction from the Central government can offer
the necessary guarantee and premise for the local government in low
carbon financing. Secondly, there is no unified statistics instrument
on low carbon financing in China, which is against policy decision-
making analysis and formulation; therefore, it is necessary to set
up a unified low carbon financing database (including low carbon
financing of the local government). Lastly, the ultimate purpose of low
carbon financing is to develop green and low carbon cities and reduce
emission. At present, fossil energy and some high-energy consuming
industries are subsidized; how to reduce the subsidy is also one of the
important issues to improve the low carbon financing.
136 Low Carbon Development in China and India
bonds, equity, risk sharing, etc.)
• Actively making use of the international capital is also an important
means for cities to facilitate low carbon financing. The significance
of international funds for cities lies in the international management
and operation experience brought for local government and local
financial institutions by relevant cooperation programmes and
capital use rather than limited to the funds. With the technical
assistances brought by funds, the city’s knowledge and business
competence in energy-saving technology and low carbon industry
have also been improved. The local government should strengthen
the cooperation and communication with other countries and
funding authorities so as to earn more support such as loans for
low carbon programmes, grant and cooperation, etc. Besides, the
local government should improve its own investment facilitation in
the low carbon economy sector that suits its own development, and
adopt various facilitation and favourable policies to attract more
investment that may facilitate the local low carbon economy.
This chapter only analyses the financing issue with cities to facilitate
low carbon economy as a whole; it is necessary to make the analysis
on specific feasibility with regard to different city conditions and
instruments. At the same time, we would like to stress the following
aspects: firstly, the innovation of low carbon financing instruments
and financing capacity of local government are closely related to
central policies. Only stable, definite, and anticipated policy signals
and development direction from the Central government can offer
the necessary guarantee and premise for the local government in low
carbon financing. Secondly, there is no unified statistics instrument
on low carbon financing in China, which is against policy decision-
making analysis and formulation; therefore, it is necessary to set
up a unified low carbon financing database (including low carbon
financing of the local government). Lastly, the ultimate purpose of low
carbon financing is to develop green and low carbon cities and reduce
emission. At present, fossil energy and some high-energy consuming
industries are subsidized; how to reduce the subsidy is also one of the
important issues to improve the low carbon financing.
136 Low Carbon Development in China and India
