Page 9 - Low Carbon Development in China and India
P. 9
1.4.2 Possible Areas of Cooperation between China and
India................................................................................. 58
1.5 Policy Recommendations......................................................... 60
1.6 The Way Forward..................................................................... 70
C hapter 2: Innovative Financing for Low Carbon
Development... .................................................................................. 73
2.1 Introduction............................................................................... 73
2.2 The Challenge of Budget Increase for Cities in Response
to Climate Change.................................................................... 75
2.2.1 Expenditure Analysis of Current Low Carbon
Development Sectors of Major Cities in the
World............................................................................... 76
2.2.2 Analysis of the Expenditure Challenge Facing
Local Governments in China to Develop a Low
Carbon Economy........................................................... 81
2.3 Fiscal Instruments for Low Carbon Financing in Cities...... 85
2.3.1 Taxation........................................................................... 86
2.3.2 Fees................................................................................... 91
2.3.3 Transfer Payment........................................................... 93
2.4 Financial Instruments for Urban Low Carbon Financing... 96
2.4.1 Innovated Public Fund Direction Instrument........... 96
2.4.2 Carbon Financial Instruments...................................... 106
2.4.3 Innovation of Traditional Financial Market
Instruments..................................................................... 111
2.5 International Financing............................................................ 122
2.5.1 Key Institutions Providing Financial and Technical
Support............................................................................ 123
2.5.2 Grant................................................................................ 126
2.5.3 Loans on Favourable Terms......................................... 127
2.5.4 International Green Credit........................................... 128
2.5.5 Risk Management Instruments of International
Financial Institutions..................................................... 131
2.5.6 Strengthen the Cooperation between Local
Government with Other State and Local
Governments.................................................................. 132
2.6 Conclusion................................................................................. 132
Appendix A: Summary of GDP Per Capita and Low carbon
Expenditure Per Capita of Provincial Administrative Region
in China, 2011.................................................................................... 137
viii Contents
India................................................................................. 58
1.5 Policy Recommendations......................................................... 60
1.6 The Way Forward..................................................................... 70
C hapter 2: Innovative Financing for Low Carbon
Development... .................................................................................. 73
2.1 Introduction............................................................................... 73
2.2 The Challenge of Budget Increase for Cities in Response
to Climate Change.................................................................... 75
2.2.1 Expenditure Analysis of Current Low Carbon
Development Sectors of Major Cities in the
World............................................................................... 76
2.2.2 Analysis of the Expenditure Challenge Facing
Local Governments in China to Develop a Low
Carbon Economy........................................................... 81
2.3 Fiscal Instruments for Low Carbon Financing in Cities...... 85
2.3.1 Taxation........................................................................... 86
2.3.2 Fees................................................................................... 91
2.3.3 Transfer Payment........................................................... 93
2.4 Financial Instruments for Urban Low Carbon Financing... 96
2.4.1 Innovated Public Fund Direction Instrument........... 96
2.4.2 Carbon Financial Instruments...................................... 106
2.4.3 Innovation of Traditional Financial Market
Instruments..................................................................... 111
2.5 International Financing............................................................ 122
2.5.1 Key Institutions Providing Financial and Technical
Support............................................................................ 123
2.5.2 Grant................................................................................ 126
2.5.3 Loans on Favourable Terms......................................... 127
2.5.4 International Green Credit........................................... 128
2.5.5 Risk Management Instruments of International
Financial Institutions..................................................... 131
2.5.6 Strengthen the Cooperation between Local
Government with Other State and Local
Governments.................................................................. 132
2.6 Conclusion................................................................................. 132
Appendix A: Summary of GDP Per Capita and Low carbon
Expenditure Per Capita of Provincial Administrative Region
in China, 2011.................................................................................... 137
viii Contents
