The carbon neutrality is the solution to sustain the economic growth from China and the public-private partnerships are a key factor in achieving this goal, he said. Zhu Min.

The vice-president of the China Center for International Economic Exchange stated that carbon neutrality requires a "paradigm shift" in development, focused on sustainability.

Zhu Min said China's strengths that enable it to play a leading role in this change and serve as a model for other developing countries include its government's ability to coordinate systemic change, its vast domestic market and growth potential, its current advantage in green technology, and the role of digitization.

"While all of these factors are vital to facilitate a paradigm shift, they need to be supported by a strong public-private partnership," he stressed.

The vice president of the China Center for International Economic Exchange said that the government in China acts not only as a regulator, but also as a key market player.

"While policy informs and incentivizes market decision-makers, it must work closely with market participants," he emphasized.

On the other hand, he added, companies are the carbon emitters, but also the ones driving innovative solutions to decarbonize and decarbonize the future. Some companies and industries have already taken the lead in the global green race.

"China, which is home to most of the world's leading PV manufacturers, has been a global leader in green finance for years and has state-owned energy companies boldly investing in renewables. The two can work together to catalyze technological breakthroughs and foster innovative business models, ensuring an agile and effective paradigm shift," he said.

Stronger public-private partnerships essential

In order to adapt to the new paradigm shift, it is essential to have an public-private partnership stronger, more efficient, complementary, dynamic and systemic. To this end, three elements will be crucial, Zhu Min said.

Innovative policy instruments

These play a key role. From China's past green successes, including the electric vehicle industry, it is clear that policies ensure that market players have sufficient incentives. In this partnership, governments must give prominence to business-relevant public tools.

2. A framework for macro-management of zero carbon finance.

Financial tools are urgently needed to ensure the success of the transition. The paradigm shift will also require more innovative financing tools in the market to decarbonize the economy-wide transition, especially in sectors that are difficult to decarbonize. Partnership can facilitate the mobilization of financing from a variety of sources, including public capital, private investment and philanthropic donations.

3. Technological innovation

Technology is the area where policy and financing are most intertwined, and where the private sector can be particularly proactive. The government fosters an environment conducive to technological innovation for private actors. It can even create a carbon-neutral technology bank that uses public capital to leverage private and philanthropic investment in innovation. And the latter should further leverage its entrepreneurial mindset and reframe risks as opportunities to deepen various technological pathways to carbon neutrality.

Zhu Min emphasized that the ecological paradigm and the move towards the carbon neutrality require greater cooperation between the public and private sectors, which calls for innovation and partnership and sets a model for more emerging markets.

Source: World Economic Forum