China is well-positioned to take a stronger global leadership role on climate change as the United States reneges on previous commitments, a former central bank economist said – but he warned its approach must be built on the principle of mutual benefit to be effective.
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“Trump’s withdrawal from the Paris Agreement shook global confidence in climate action, and the world is now looking for new leaders,” said Ma Jun, formerly chief economist at the research bureau of the People’s Bank of China and co-chair of the G20 Sustainable Finance Working Group.
“China’s economic scale provides the basis for its leadership, but the right approach is crucial. It must look beyond short-term gains and focus on shared interests.”
Ma, founder and president of the Beijing-based Institute of Finance and Sustainability, suggested a green free-trade initiative targeting sharp reductions in tariff and non-tariff barriers on goods and services that carry environmental benefits.
To fast-track the plan, he suggested deploying it under the existing framework of the Regional Comprehensive Economic Partnership (RCEP) – the world’s largest free-trade pact, encompassing all 10 countries in the Asean bloc plus China, Japan, South Korea, Australia and New Zealand.
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Early findings from Ma’s team projected that such an arrangement could accelerate the green transition across all RCEP economies while delivering economic benefits like GDP growth, export expansion and job creation.