Invited by the COP28 Climate Tech Accelerator and media partners, WeCarbon's founders were interviewed by Marilyn Waite, Executive Director of the Climate Finance Fund (CFF), and Mr. Andrew Chang, Head of China Programmes at New Energy Nexus, sharing their views on frontier climate tech and ecosystem innovation in China.
Figure 1: WeCarbon's founders are interviewed
Below are highlights from the interview:
Andrew: How did WeCarbon's founding team meet? What do you hope to get out of the COP28 events?
Eric: The three of us have known each other for a long time. We all work in climate and ESG, so we were keen to advance a public agenda on climate together. In autumn 2021, as part of a group of six founding partners, the three of us proposed holding "Shanghai Climate Week" to influential official and civil society climate organisations in China, and we have supported its growth ever since, up to today's release of the shared vision for Shanghai Climate Week 2024.
We are at COP28 because we were honoured to be invited by the COP28 organising committee and New Energy Nexus to join the COP28 Climate Tech Accelerator as one of its 100 global members. We hope to meet more peers and friends on the COP28 stage and learn about the business models of the global climate community. At COP28 we will also take part in the 3rd International Carbon Neutrality Practice Conference co-hosted by Shanghai Climate Week, and join the launch of Shanghai Climate Week 2024 live from Dubai.
Andrew: You mentioned "Shanghai Climate Week". Just before COP28, MENA Climate Week 2023 (Middle East and North Africa Climate Week) took place in Saudi Arabia, and there are also Climate Week NYC, London Climate Action Week and others. Could you describe the vision of Shanghai Climate Week?
Eric: Shanghai Climate Week follows the climate week model of major global cities. It aims to raise public awareness of climate change and encourage action on climate change across society. It draws its inspiration from, and benchmarks itself against, Climate Week NYC, London Climate Action Week and similar events, but we have also given it Chinese characteristics. We hope Shanghai Climate Week will showcase China's vibrant carbon neutrality practice, promote climate cooperation between China and the rest of the world, and engage in dialogue with global cities such as New York and London.
Marilyn: Let's turn to China. What do China's State-owned Assets Supervision and Administration Commission (SASAC) and the stock exchanges currently require of Chinese companies on ESG disclosure? Are these requirements being well implemented, and will they be tightened in future?
Remoca: In 2022, SASAC set up a Bureau of Social Responsibility to oversee social responsibility work at state-owned enterprises. China is now aiming for "full coverage" of dedicated ESG report disclosure by listed companies under central SOEs in 2023. As for stock exchanges, the Hong Kong Stock Exchange has some of the strictest ESG requirements in the world and was an early and thorough adopter of the TCFD recommendations and principles. The Shanghai and Shenzhen stock exchanges currently require ESG-related indicators to be disclosed in key industries and sectors, but do not yet require ESG reports from all companies. We believe that as China's sustainability policies advance, regulatory requirements will be tightened and ESG requirements will eventually be fully implemented in China.
Marilyn: How do you see the global carbon market?
Eric: Carbon markets are divided into the mandatory carbon market and the voluntary carbon market. In China, the mandatory carbon market mainly covers the power sector; it is relatively mature and is gradually expanding. The voluntary carbon market went through a pause, and in 2023 the Ministry of Ecology and Environment revised the rules on greenhouse gas emission reductions, marking the relaunch of China's voluntary carbon market. China has now issued an initial batch of four methodologies for the voluntary carbon market, and more are under expert review.
Andrew: What is your view of the EU Carbon Border Adjustment Mechanism (CBAM)?
Remoca: The EU CBAM is a key focus for WeCarbon in 2024. With the CBAM rules formally taking effect on 1 October 2023, related industries in China, a major manufacturing country, are bound to be affected. From what we have seen, many Chinese manufacturers have been slow to respond so far. In 2024, WeCarbon plans to work with European partners to launch a series of solutions for major EU regulations such as CBAM and the EU Battery Regulation. A one-stop online platform linked with major European certification bodies will provide integrated, intelligent management of three core functions, customs declaration, certification and asset management, making it easier for companies in China and elsewhere to respond to the impact of EU regulations.
Marilyn: How is WeCarbon helping the Global South tackle climate-related challenges?
Eric: To begin with, China, where WeCarbon is rooted, is itself part of the Global South. China's manufacturing sector is relatively advanced and its sustainability policies are setting international trends, so there is a great deal of advanced practice here in energy saving and carbon reduction. While our main focus is China, we are also very keen to share China's advanced experience and stories with other countries of the Global South.
Figure 2: WeCarbon's founders with Ms. Marilyn Waite and Mr. Andrew Chang
Gathered in Dubai, WeCarbon looks forward to working with climate advocates worldwide to drive innovation in climate fintech, providing solutions to climate change, helping build a green and harmonious planet, and showing the world China's new green momentum.