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The targets of energy conservation, decarbonization, and industry reinvigoration have significantly influenced the design of China's new energy vehicle (NEV) industrial policies and nationwide electrification. As a monumental policy framework for energy transition in transportation sector, the NEV industry development plan plays an influential role in promoting cleantech diffusion and enhancing NEV competitiveness. This study employs an event study method to investigate the stock market reaction to the NEV plan shocks. The NEV plan announced in 2020 receives a markedly positive stock price effect of 3.72% in the 6-day event window. Heterogeneity tests on subsamples indicate that state-backed entities exhibit a similar effect to the total sample, while the automotive manufacturing class and original equipment manufacturers see a significantly higher market value gain of 6.56% and 13.34%, respectively. However, battery manufacturers, as one of the key participants in the NEV value chain, experience an insignificant stock price effect. This study documents the financial consequences of clean energy policies specific to the emission-intensive automotive manufacturing sector, highlights the effectiveness of government-to-investor signalling in a cleantech diffusion context, and reveals the implications to other economies seeking to deploy clean transport and enhance environmental sustainability. The national NEV industry development plan aiming at the energy transition of the transportation sector can incur outperformance of NEV stocks in the financial market. Different stock market performances between NEV plans manifest investor preference for market-oriented industry policies. The long-term policy framework for green industry transition can send positive signals to investors, guide capital reallocation, and direct investment flows into key financial assets. The implications from the Chinese market offer valuable insights for other countries in formulating concrete industry planning, transition agendas, and binding targets for climate change mitigation. [ABSTRACT FROM AUTHOR]

As part of an effort to explore and incentivize the development of innovation-driven, green and low-carbon cities, China implemented the innovative city pilot policy (ICPP) in 2008. Using the ICPP as a quasi-natural experiment, we investigate whether and through which channels the ICPP reduces corporate carbon intensity. To do this, we employ a staggered difference-in-differences (DID) econometric method and find that the ICPP indeed mitigates corporate carbon intensity. This relationship is shown to be quite robust using various alternative specifications of the DID analysis. The reduction effect on corporate carbon intensity is more pronounced for private firms, polluting firms, and capital-intensive firms, showing a convergence trend towards technology-intensive and clean firms. We find the ICPP reduces corporate intensity by enhancing corporate innovation and increasing the value-added rate (i.e. corporate upgrading). Based on these novel findings, we draw out policy implications for carbon neutrality, shedding light on pathways for addressing climate change and achieving sustainable development. Key policy insights Carbon neutrality is a long-term and ambitious target. Achieving this target requires the coordination and integration of multiple climate instruments. Among these, technological progress (e.g. renewable energy substitution and improved carbon efficiency) determines the overall cost of carbon neutrality. And innovation support policies should be included in the optimal climate policy package. Innovation policy can promote knowledge spillovers and long-term economic growth, as well as address environmental externalities of greenhouse gas (GHG) emissions, thereby providing a cost-effective way of combating climate change. Empirical evidence suggests that the ICPP implemented in China significantly reduces corporate carbon intensity and thus has promising prospects for the carbon-neutral target. The policy help firms enhance their innovation activities and facilitate corporate upgrading. As other emerging economies also face the sharp trade-off between climate change mitigation and economic growth, they can learn from this centrally-planned and locally-led innovation policy and lead their development mode onto a cleaner and decarbonized path. [ABSTRACT FROM AUTHOR]

Despite substantial efforts being made through public and private sources, funding for climate change mitigation falls far short of what is needed. Meanwhile, philanthropic sources have begun to emerge as important sustainability partners by connecting multiple sectors and guiding funding flows. This study provides a comprehensive overview of climate-related philanthropic foundation financing and funding in China. Using a classification framework for climate change initiatives through co-word analysis and text segmentation techniques, we conduct visualization analysis to depict the changing pattern of climate philanthropy in China by analyzing donors, subfields, and flow of funds between 2008 and 2019. We conclude by providing suggestions for funders, charities, and policymakers seeking to enhance the value of collaborative governance in addressing climate change. Philanthropic sources play a key role in climate change mitigation in the new mixed-actor model of climate governance in China. Climate philanthropy in China is inseparable from strong political connections and policy influence of the government. Policymakers worldwide need to pay attention to flows and gaps in philanthropic funding as part of climate finance monitoring and to stimulate data-driven decisions concerning future investments. Policymakers need to leverage the crucial role of philanthropy in connecting multiple sectors to strengthen the climate change mitigation ecosystem. [ABSTRACT FROM AUTHOR]

Since 1982, China's blue carbon management policies have made significant contributions to blue carbon's development. Blue carbon is carbon captured and stored by marine ecosystems and it plays an important role in addressing climate change. Analyzing the evolution of blue carbon management policy is necessary to understand its potential to contribute to climate action, and to improve its management and maximize its effectiveness. This paper considers these issues in China. It used content analysis and ROSTCM6 software to empirically analyze 82 blue carbon management policy documents from China. The evolution of relevant policies and their performance is as follows: First, policy focus has gradually shifted from protecting blue carbon ecosystems to increasing blue carbon stocks; second, policy participants became increasingly diversified; and third, the policy approach has changed from simple protection to comprehensive, integrated land use – marine system management. Although the Chinese government has made progress in blue carbon management policies, it still faces many challenges including blue carbon ecosystem protection; legal status; trading mechanisms; and international cooperation. The development of future blue carbon management policy should focus on optimizing the land use structure of coastal zones, on promoting environmental legislation highlighting blue carbon issues, on supporting the establishment of blue carbon trading mechanisms, and on strengthening its international cooperation in this arena. China's blue carbon management approaches shows that relevant policies contribute greatly to addressing climate change and sustainable development. This provides new theoretical support to promote future development of blue carbon management policies. Establishing a blue carbon trading mechanism provides economic incentives for its management. Blue carbon's property rights, accounting standards, and trading entities need to be further clarified. A detailed legal definition of blue carbon is needed to ensure that appropriate penalties are imposed for the destruction of blue carbon ecosystems. [ABSTRACT FROM AUTHOR]

Financing climate change mitigation and adaptation in Asia is critical for its population and economies but also for those of the world. This editorial provides a commentary and overview of ten articles within this special issue of Climate Policy on 'Green Finance in Asia'. Contributions are diverse in terms of focus and methods. Most of the articles focus on managing transition risk with six of the articles having an energy focus; the dominant themes are the risk of stranded coal assets in China; the role of export finance by China and Japan for fossil fuel-fired power generation assets within Asia; and investment in renewable power generation and the policies to support such investment. The remaining four articles explore various policies in specific country contexts: the effects of green bond policies in China; the greening of monetary policy in China; the governance of sustainable finance in Indonesia; and policies to support investment and finance of off-grid electricity access in Bangladesh. Most of the ten contributions come from researchers in developed countries and principally from non-Asian countries, suggesting there is a need to develop green finance research capability and capacity across Asia. Despite being withing scope of the special issue, this collection does not contain papers on physical risk or adaptation finance. We highlight these as important gaps and priorities for future research. Key policy insights This editorial provides a commentary and overview of ten articles within this special issue of Climate Policy on 'Green Finance in Asia'. Most of the ten contributions come from researchers in developed countries and principally from non-Asian countries. There is a need to develop green finance research capability and capacity across Asia. Most contributions were focussed on transition risk, with limited or no focus on physical risk and adaptation finance. This likely reflects the multiple resource and expertise challenges faced when conducting physical risks assessments. [ABSTRACT FROM AUTHOR]

Emissions trading systems (ETS) have been a widely-adopted policy instrument for global climate mitigation and a key choice in China's pledge for peaking emissions and carbon neutrality. Broader adoption and linkage of ETS programmes require a better understanding of whether, to what extent, and how existing regional programmes address carbon emissions at an aggregate level. Combining a synthetic control method and event studies, we adopt a comprehensive evaluation framework to investigate regional mitigation effects, pathways, and ancillary impacts in three Chinese regions with four independent pilot ETS programmes. The findings show economy-wide responses to pilot announcement even in non-ETS sectors, but enduring mitigation only within ETS sectors. Mitigation was achieved via improvement in energy efficiency and fuel switch, without impairing industrial activities. There were local air-pollution reduction co-benefits but no leakage or spillover. Bounded extrapolation from the pilots suggests 18%–20% reductions can be achieved in non-pilot regions by a national market, which could learn from pilots' experiences to broaden sector coverage and ensure policy consistency and transparency. Regional ETS were able to stabilize emissions with little cost, providing rationale for rapidly developing economies to adopt such systems. Key policy insights Despite being unlinked, regional ETS pilots delivered substantial climate mitigation and local air pollution reduction in China. Policy effects were initially driven by economy-wide mitigation due to policy expectations, followed by ETS-sector mitigation due to carbon pricing. Industries reduced CO2 emissions from energy efficiency improvements and fuel switch. Mitigation was accompanied by little emission leakage or impairment to the economy. Extrapolating mitigation rates in a national market suggests 18%–20% reduction of CO2. [ABSTRACT FROM AUTHOR]