Renmin University of China launched its Center for Eco-Finance Studies, the first-ever think tank on eco-finance in China, on Tuesday. The new center aims to provide theoretical support to the nation’s transformation to a more sustainable growth model.
The think tank was established in response to the relatively slow theoretical development of eco-finance in China, due mostly to the fact that social science studies related to this discipline have largely been fragmented, with environmental and financial experts working irrespective of each other’s needs.
An eco-finance system is expected to meet the public’s desire for a better environment by allowing a market-oriented financial system to direct funding to environmentally-friendly industries, enterprises and manufacturing processes while forcing out funding in energy-intensive sectors.
By setting up an interdisciplinary research institute dedicated to this field, RUC intends to seek a synergy that will foster the development of eco-finance, said RUC President Chen Yulu at the launching ceremony of the Center for Eco-Finance Studies.
“By their very natures, ecology seeks public interest whereas finance seeks profit. We must to merge these two contending values before the study of eco-finance can be fruitful,” Chen said. Chen encouraged non-governmental ecological projects to rely more heavily on the market while seeking funding from green-minded business leaders.
Germany’s ex-President Horst Kohler, an advocate of green economy, also attended the launch ceremony. Kohler noted how Germany’s development pattern proves that curbing pollution is more effective and less costly than eliminating pollution. He also admitted that China’s shift to a green economy will come a price tag; this was also the case when Germany modernized the East German planned economy, which he described as “deficient and environmentally destructive.”
“Once that change is effected, it will make us stronger. Clean energy saves a lot of money, for example for cleaning up and repairing the environment, and for health care. Clean energy and sustainable development spin off many products and solutions that can be sold worldwide,” said Kohler, who also formerly held the posts of President of the European Bank for Reconstruction and Development and head of the International Monetary Fund.
RUC, a prestigious national institute, takes pride in both environmental and financial studies, supported by decades of contributions to academic and professional resources, so it is not surprising that China’s first eco-finance think tank has been set up at RUC. RUC’s Chongyang Institute for Financial Studies shall oversee the Eco-Finance Center’s daily operations.
