As the world's second largest economy, China will face unique challenges in moving toward carbon neutrality.

That is to decarbonize its economy while maintaining stable economic growth, to contribute to great rejuvenation of the Chinese nation.

How can we achieve it?

According to Oliver Wyman, China’s transition to net zero will require about RMB140 trillion ($22 trillion) of green financing in aggregate for the 2020-60 period across electricity, steel, mobility, and construction and real estate.

How can we ensure the supply of funds to support the green transition of real economy? We identify three areas where change will be needed.

Firstly, innovation in financing, financial institutions must introduce innovative products and services, leveraging China’s multi-level capital market to ease the shortage of long-term green loans.

Second, collaboration, industry players need to connect with their value chain partners to collaborate on producing and adopting sustainable products and materials.

Lastly, a comprehensive policy support is much needed, particularly in the areas of standards and the use of tax incentives, encourage best practices such as tax breaks on green products and services.

China has tremendous opportunities to achieve net zero emissions and improve the global environment, and Oliver Wyman is excited about the future of the Chinese market.

We will continue to combine global perspectives and local experience to support our clients' transformation and development in the rapidly changing environment.

In green finance, Oliver Wyman has deep industry knowledge with specialized expertise. We are willing to work together with stakeholders to support China's green revolution.

My name is Hang Qian, and I’m a Partner at Oliver Wyman.

Together, let’s accelerate breakthroughs.