Name: Chinese Banks Targeting Coal Energy To Fight Climate Change
Uploaded: 2020-01-14
Duration: 3 min 43 s
Description: Clean energy is incentivized in China. (September 2019)

[MUSIC PLAYING] The water risks alone cover 15 sub-sectors. And we're also looking at risks associated with carbon trading. And talk for a second about coal, and what have you found in the coal stress test? Have you found a large difference among different coal companies in China in terms of what you regard as their climate exposure? And then, number two-- what have you done with the bad actors? They're paying more for debt from the ICBC. Is that the end result? Mhmm. [SPEAKING CHINESE] Yes, we've done that. In China, at the very beginning we focused on coal fired power plants. And because we believe the consumption of coal is a key contributor to climate change with CO2 emission. In China, in the electric power industry, coal accounts for a very big part. For the key commercial banks, coal firing power plants are major loan customers. If there is growing risk experienced by that sector, it may worsen our asset quality. So we identified coal fired power to start using our stress testing. And China is increasing its environmental protection standards, pushing the overall economy to go green. The green companies and green industries are encouraged to grow faster while resource and energy and pollution-intensive companies are being restricted. The result of this exercise at the ICBC is that coal companies that are seen as more climate risky, climate riskier, have to pay the ICBC more for debt than other coal companies do. To move the needle in China away from coal and the electricity system. We've heard signs-- in fact, this morning, indications that China's coal use may peak earlier than people thought, and therefore, its carbon emissions may peak earlier than people thought. Is everything that Hong is talking about green finance with regard to coal actually behind the shift away from coal in China? In other words, are all these fancy is really doing anything in the coal sector? Or is what is happening in coal happening for other reasons and is green finance not doing enough to make it happen faster? Yeah. My answer simply is yes because-- Yes what? Because the banker now, they have faced a great risk if they still invest in the coal industry. We understand now China-- the coal consumption have reached the peak already by 2013 Not after. So I think that is the key operation. You compared it to before is now-- compared to the 2013, and China coal consumption reduced the 400 million times already. And so some small, medium, and small coal mine is now bankrupt. Even though large scale companies are still facing difficulty to get financial support from bankers. And so far, bankers now-- they are in high risk and maybe they could not get a return on their investment in a coal company. [LOGO THEME]

Chinese Banks Targeting Coal Energy To Fight Climate Change

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Clean energy is incentivized in China. (September 2019)

the water with a loan cover 15 subsectors. And also we're also looking at risk associated with carbon trading and talk for a second about Cole. And what have you found in the coal stress test? Have you found a large difference among different coal companies in China in terms of what you regard as their climate exposure and then number two, what have you done with the bad actors? They're paying more for debt from the I C B c. Is that the UN result? Uh, no. Yes, we've done that. You're in China. At the very beginning, we focused on a coal fired power plants on because we believe the consumption off Cole is ah, key contributor to climate change with field to emission in China. In the electric power industry, a coal accounts for a very big part for the key commercial banks. Coop firing power plants are major loan customers. If there is growing risk experience by that sector, it might work thing worse than our asset quality. So we identified coal fired power to start within. Our stress testing on China is in increasing is encountering its environmental protection standards, pushing the overall economy to go green. The green companies and green industries are encouraged to grow faster while a resource and energy and pollution intensive companies are being restricted. The results of this exercise of the I C B C is that coal companies that are seen as Maur climate risky, climate riskier have to pay the icy be Seymour for debt than other companies do to move the needle in China away from coal in the electricity system. We've heard signs. In fact, this morning. Indications that China's coal use may peak earlier than people thought, and therefore its carbon emissions may peak earlier than people thought, is everything that Hyung is talking about green finance with regard to Cole, actually behind the shift away from coal in China. In other words, are all these fancy finances really doing anything in the coal sector? Or is what is happening in coal happening for other reasons and his green finance not doing enough to make it happen fast? Yeah, somebody's years because, yes, what? Because the banker now they have a face, a great race if they still invest in a coal industry, we understand now China have the coconut consumption have a least the peak or reading by 2030 knots. So I think that please give a pleasure. You compare toe before is now combat with 2030 13 and China Coke. And some sins refused the 400 million already. And so some small, medium and small coal mine knowledge is the bank locker. I even know that last day or cope combined company and still facing difficult to get financial support from bankers on so far is bankers. They had high res. Maybe they can not get return on their investment in a coal company.