Wang, Y. and Liu, Q. (2013). 2012 Climate Finance Report: Climate Capital Flow, Economic Sciences Press, Beijing.

The 2012 China Climate Finance Report: Climate Capital Flow (Hereinafter the Report) was published on 16 December, 2012 by the Research Center for Climate and Energy Finance (RCCEF) of Central University of Finance and Economics (CUFE) jointly with the Climate Group. Based on the climate capital flow lifecycle analysis framework elaborated in the 2011 China Climate Financing Report, the Report is the first analysis which tracks the entire chain of China’s climate capital flow, assesses the evolution of China’s climate finance landscape and identifies the key bottlenecks that hinder climate finance in China. The first four chapters focus on four key determinants of the climate finance lifecycle, including:
Capital Sources: capital sources are categorized into three types, including public capital, public-private capital and private capital. International and domestic financial budget, carbon markets, philanthropy and NGOs, conventional financial markets and enterprise direct investment are major capital sources for climate change finance.
Intermediaries: most of the climate capitals are transferred by intermediary institutions to final beneficiary users. In some cases, these institutions can scale up available capital by aggregating a large amount of capital or leveraging co-financing.
Transfer instruments: the public or private financial instruments that facilitate the transfer and allocation of climate capital.
Deployment of capital: the climate capital is allocated to final users or sectors to conduct mitigation (including REDD+) and/or adaptation (including capacity building) activities and ensure the achievement of climate targets.
Based on findings of chapters 1-4, chapter 5 assesses the Chinese climate financing system from the perspective of capital flow and financial innovation. It aims at identifying key determinants and policy demands to break the bottlenecks. Finally, chapter 6 discusses the opportunities and challenges of developing China’s climate financing system and provides recommendations.