Green Finance Leading the Future of the Industry

Sun Wei, Chairman of GCL Financial Holding: Serving the physical economy and building a smart green financial eco-system

China News Shanghai reported on 25th May (Xu Bin) During the 10th International Solar Energy Industry and PV Engineering Exhibition and Forum, the Global PV Finance Summit was held on 24th. Sun Wei, CEO of GCL Group and Chairman of GCL Financial (Group) Holding Co., Ltd gave the opening statement.  He summarised the global development trend of renewable energy and explained the opportunity for green finance.  He presented how GCL Group formed a specialised financial group with a strategic target to develop ‘combination between industry and finance’ in order to serve the green physical economy.

 

Sun Wei pointed out that as extensive actions were taken globally for Climate Governance, low-carbon energy transition became a major lever for governments to observe international obligations and to improve ecological environment.  In 2015 the total investment on renewable energy globally reached unprecedented USD 286 billion, twice as fossil fuel.  China had outstanding performance, accounting for 36% of global total investment.

 

Although it is exciting growth, compared with the emission reduction commitment and progress plan set by major countries during the Climate Conference in Paris, the development of renewable energy is still facing great challenges. Take China for example, to achieve the target that total consumption of non-fossil fuel among total primary energy consumption reaching 15% by 2020, according to the estimation by central bank, the related average annual investment will need to be over USD 300 billion. But fiscal investment from government will only be around 10-15% of that amount. Sun Wei believes that this is a great opportunity for green finance to grow rapidly and become the critical engine for green economic development.

 

She stresses that the renewable energy industry including the PV industry is not only technology-intensive but also capital-intensive.  The prosperity of the industry requires continuous technical innovation from the companies as well as the strong support from various investors.

 

In recent years, a group of excellent companies in renewable energy are exploring various development paths of integrating finance and industry, including asset securitisation, green bonds, leasing, YieldCo etc. In March this year, GCL Group officially launched its financial holding company, to enter the new development stage of combination between industry and finance with a layout of ‘one body and two wings’ – specialised finance and specialised industry.

 

Sun Wei also said that GCL had deep roots in physical economy for over 26 years, knowing profoundly the responsibilities and difficulties of an industrial company.  Establishing the Financial Holding Group is to hope that based on the familiar and experienced industry of green energy and environmental related business, it can create a smart green financial ecosystem combining ‘energy finance, green finance, technology finance and smart finance’.  With the support from industry and services, it will guide social capital to green physical economy, support economic transition and upgrading as well as energy structure changing.