Low-Carbon Development and Financing Solutions – South-South Cooperation Workshop

FCSSC

On August 28, Finance Center for South-South Cooperation (FCSSC) participated in the “Low-Carbon Development and Financing Solutions – South-South Cooperation” workshop, which was held by the United Nations Development Programme in China (UNDP China) in Beijing. Ms. Joyce Zhang, Deputy Director-General of FCSSC, joined a panel discussion themed “Innovative Financing for Sustainable Development in the South-South Cooperation Context” to share FCSSC’s experience in channeling private capital towards the developing world with representatives from over 20 different Belt and Road (OBOR) countries, leading Chinese and international financial institutions, the private sector, and major academics in this field.

According to Ms. Zhang, 60 years after the Bandung Conference, we saw sweeping and profound changes taking place in the developing countries. The success of the Millennium Development Goals marked a historic and effective method of global poverty reduction, and the 2030 Agenda for Sustainable Development went further on promoting the prosperity of human beings by setting 17 sustainable development goals (SDGs). “The achievement of these goals depends heavily on resources; thus, we need more innovative sources of financing to better mobilize resources and distribute funds beyond traditional aids like grants, debt and technical assistance, an effort that FCSSC is making through our network.”

Later Ms. Zhang identified four major issues that private investors were facing when choosing to invest into areas related to South-South Cooperation and OBOR – namely information, return, risk and investment channels. “Private capital is consistently seeking investment opportunities. However, it would only commit to those that meet its appetite for risk and reward,” said Ms. Zhang. “With appropriate channel and information support, we can lower the legal, political, policy-related and resource-related risks for private capital, and encourage private investors to look at not only monetary returns but also social and environmental impacts. In FCSSC’s practice, we’ve been building different platforms for investment information sharing, working with relevant UN agencies to create a system that recognizes, quantifies and certifies social impacts, supporting the construction of industrial parks to facilitate policy stability, and making use of our financial network to broaden investment and financing channels. We are trying our best to enhance the connection between private sectors and the global development endeavor.”

As part of the efforts to support China’s South-South cooperation and Belt and Road Initiative, UNDP China organized a workshop themed “Low-Carbon Development and Financing Solutions through South-South Cooperation” on 28 August 2017 in Beijing, Hilton Hotel. The workshop was built on the recent momentum of the Belt and Road Forum held in May 2017 in Beijing, seeking to provide a platform for dialogue and discussion on how China’s low-carbon solutions and development financing may benefit developing countries, including providing concrete examples to countries and institutions of new innovative models for development financing.

FCSSC has been working with UNDP China since 2015. As strategic cooperation partners, the two parties have successfully supported the launch of “Made in Africa Initiative” and the United Nations Social Impact Fund, as well as co-organized the annual “Silk Road Forum”. Both FCSSC and UNDP China would like to further strengthen the partnership to actively contribute to the realization of SDGs.