6. Increasing Support for Addressing Climate Change

China attaches great importance to developing support capacity to address climate change. It has continuously improved the statistical and accounting system for greenhouse gas emissions, given a key role to green finance, and leveraged the supporting role of scientific and technological innovation to promote the transfer and application of climate change technologies.

Improving the statistical and accounting systems of greenhouse gas emissions. China has established and improved a basic statistical system for measuring greenhouse gas emissions. It has proposed a statistical indicator system on climate change response involving 36 indicators grouped into 5 categories, including climate change and impact. It has launched a statistical report on climate change response on this basis, and continued to update and revise the report. It has compiled a greenhouse gas inventory, and submitted two national reports and two two-year update reports based on the Initial National Report on Climate Change of the People's Republic of China. The government has urged enterprises to improve their accounting and reporting of greenhouse gas emissions, issued appropriate guidelines for 24 industries, and organized companies to prepare greenhouse gas emission reports. The Office of the Leading Group on Carbon Peaking and Carbon Neutrality has formed a taskforce to speed up efforts to upgrade the carbon emission statistical and accounting system.

Increasing green finance support. China continues to increase investment to support efforts to tackle climate change. It has improved the top-level design of green finance, and set up nine pilot zones for reform and innovation of green finance in six provincial-level administrative units, namely, Gansu, Guangdong, Guizhou, Jiangxi, Xinjiang, and Zhejiang. It has strengthened financial support for green and low-carbon transformation, and encouraged pilot zones to introduce successful practices to more regions. It has introduced comprehensive support policies for climate investment and financing, and pressed for building a standard system accordingly. It has also strengthened market funding guidance and promoted pilot work in climate investment and financing. It has encouraged the development of green credit mechanisms, improved supporting policies for green bonds, and published a catalog of related supporting projects, effectively guiding private capital in addressing climate change. As of the end of 2020, China's balance of green loans amounted to RMB11.95 trillion, of which the clean energy loan balance was RMB3.2 trillion. China has issued a total of about RMB1.2 trillion of green bonds, with roughly RMB800 billion outstanding, making it the world's second-biggest green bond market.

Strengthening the role of scientific and technological innovation. Scientific and technological innovation plays a fundamental role in identifying, analyzing, and responding to issues related to climate change, and is set to play a crucial role in promoting the green and low-carbon transition. China has issued a series of climate change-related special plans for technological innovation, technology promotion lists, and green industry catalogs. The government has committed to basic scientific research on climate change, emphasized the consulting function of think tanks, and promoted the research, development, and application of low-carbon technologies. More than 10 major climate change-related research and development projects have been carried out, and the application of 143 technologies in the field of greenhouse gas reduction and utilization has been promoted under the national key research and development plan. The government has encouraged enterprises to take the lead in green technology research and development, supported the transfer and application of green technology achievements, established a comprehensive national-level green technology trading market, and guided enterprises to adopt advanced and applicable energy-saving and low-carbon new technologies. China has established a carbon capture, utilization, and storage (CCUS) entrepreneurial technology innovation strategic alliance, along with a special committee and other institutions, to promote technical progress and the application of scientific and technological achievements in the field.