liu guiping : on leveraging the financial market to achieve the goal of carbon peaking and carbon neutrality speech by mr liu guiping, deputy governor of the people's bank of china, at the 13th lujiazui forum, shanghai, 10 june 2021. * * * distinguished guests, dear colleagues, ladies and gentlemen, good afternoon. peaking carbon emissions before 2030 and achieving carbon neutrality before 2060 is an important decision made by the cpc central committee with comrade xi jinping at its core after due deliberation. to implement the decisions and arrangements of the cpc central committee and the state council, the people ’ s bank of china ( pbc ) has put green finance on its priority list for the 14th five - year plan period and even a far future. the theme of this session is “ leveraging the financial markets to achieve carbon peaking and carbon neutrality ”. it is a very meaningful topic, and i ’ d like to share with you my views on it. first, we should be more proactive, both in mind and in action, in promoting green and low - carbon transition. we should have a holistic and in - depth understanding of the “ 30 · 60 ” goal. different from developed countries, china is still in the process of rapid industrialization and urbanization, its economy will maintain medium to high - speed growth for quite a long period, and its per capita demand for energy will keep rising. therefore, we are facing great pressure in carbon emission reduction. as estimated by international organizations and research institutions, the peak of carbon emissions in china will be over 10 billion tons while that in the u. s and the eu stands at 5. 7 billion tons and 4. 4 billion tons respectively. we only have 30 years to achieve carbon neutrality after reaching the peak of carbon emissions, far less than the europe and the u. s, who have 50 – 70 years. peaking carbon emissions and reaching carbon neutrality don ’ t mean we will sacrifice the economic growth, the national wealth or the people ’ s well - being. instead, it means that we should achieve high - quality development, make it comprehensive, coordinated, and sustainable, while reducing carbon emissions, and that we should strike a balance between ecological conservation and economic and social development in a thorough and rational way. in the decades to come, green and low - carbon transition will be at the core of our economic activities and become the central logic guiding the decisions for investment, production, consumption, and circulation.

. otherwise, it could divert attention from more important areas. in my opinion, the most fundamental crisis prevention measure is the promotion of economic growth and social development. the international community should reach a consensus on this and take effective steps to achieve economic growth for the whole world, particularly for the developing countries. since the late 1990s, international financial crises have occurred frequently and the crisis countries have found it difficult to access financing on the international financial market, thus posing a threat to global financial stability. the imf should actively consider using the existing financing facilities for increased support to crisis countries. meanwhile, it needs to actively promote a quota increase and the general allocation of special drawing rights. in particular, the imf needs to complete the special one - time allocation of sdrs as soon as possible to strengthen the capacity of member countries to withstand crises. in addition, the establishment of a new equitable and reasonable international economic and financial order remains one of the basic means of crisis prevention. therefore, the imf needs to continue to examine the flaws in the existing international monetary system, reform the irrational international financial architecture, and gradually establish a new international monetary system that genuinely reflects the basic features of economic globalization, fully reflects the interests of the many developing countries, and provides institutional safeguards for the sustainable growth of the global economy. in this process, widespread participation of the developing countries is needed. iii. crisis management : sovereign debt restructuring establishing a fair and reasonable sovereign debt restructuring method is important both for crisis prevention and resolution, and for private sector participation. in the last two years, the imf has conducted much valuable research on the issue of sovereign debt restructuring. while this work deserves affirmation, the existing options still have certain flaws. the automatic stay mechanism of the sovereign debt restructuring mechanism ( sdrm ) would be favorable to ensuring the smooth conduct of restructuring negotiations. however, since it would widely involve the revision of the laws of all countries and amendment of the imf articles of agreement, i ’ m afraid that it would hardly be achievable in the short term. it would certainly not be easy to ensure the independence and fairness of the dispute resolution forum, not to mention the many technical problems that still need to be solved. the collective action clause ( cac ) cannot solve the collective action problem for multiple sovereign debts, which is one of the major reasons for the emergence of the statutory approach, i. e., the sdrm. in addition, the cac impact on the bond iss