China will maintain commitment to climate action

Significance The China-US joint declaration to enhance climate cooperation, made on the final day of the summit, gives cause for optimism, despite bilateral relations worsening overall. China’s low profile at the COP26 climate summit in Glasgow last November should not be taken as indicating that the country is wavering on its commitment to climate action. Impacts There will be strong political pressure within China to meet climate targets ahead of time. China’s announcement that it will no longer finance overseas coal projects is a clear signal of support for the greening of BRI investments. Beijing will continue pushing for developed countries to meet climate finance commitments to developing countries.

Improving Climate Change Resilience in Global South Cities Through South-South Climate Finance

Climate change is likely to exacerbate inequality and poverty in Global South cities despite the presence of international agreements and conventions to enhance sustainable development such as the Paris Agreement and the Sustainable Development Goals (SDGs). Moreover, replicating Global North development models in the Global South might not be sufficient to address the climate change and development aspirations in the context of Asia; hence, Global North innovation capabilities might not be sufficient to address Global South climate change challenges. This paper provides an inductive analysis of the innovations and policies that could facilitate improved climate change mitigation and adaptation in the context of developing Asian cities. The paper concludes that innovative climate change policies should utilise emerging climate finance mechanisms such as South-South climate finance modalities to promote community science/citizen science and social innovation rather than building hard infrastructure as this could improve the governance and distribution of resources in cities.

Trends and Prospects in Climate Finance

An effective response to climate change that assures a sustainable development pathway will require a fundamental transformation towards a low carbon, climate-resilient societies. Each change need for solid financial support, financial solutions, and dedicated instruments, taking into account ESG factors and taking into account the impact of financial crises. This chapter aims to bring together theories, trends, dilemmas, and directional concepts to answer the question about changes in the existing paradigm of climate finance. On the other hand, the analysis of trends and presenting future prospects regarding sustainable finance will be aimed at enhancing the substantive and practical knowledge of the target audience. In addition, in this chapter, the following issues will be presented in particular: changes in the sustainable finance paradigm and the emergence of the climate finance paradigm, macro-and micro-financial aspects of climate change taking into account the influence of risk (including ESG risk), and a new landscape of climate finance.

Climate Finance: Mapping Air Pollution and Finance Market in Time Series

Climate finance is growing popular in addressing challenges of climate change because it controls the funding and resources to emission entities and promotes green manufacturing. In this study, we determined that PM2.5, PM10, SO2, NO2, CO, and O3 are the target pollutant in the atmosphere and we use a deep neural network to enhance the regression analysis in order to investigate the relationship between air pollution and stock prices of the targeted manufacturer. We also conduct time series analysis based on air pollution and heavy industry manufacturing in China, as the country is facing serious air pollution problems. Our study uses Convolutional-Long Short Term Memory in 2 Dimension (ConvLSTM2D) to extract the features from air pollution and enhance the time series regression in the financial market. The main contribution in our paper is discovering a feature term that impacts the stock price in the financial market, particularly for the companies that are highly impacted by the local environment. We offer a higher accurate model than the traditional time series in the stock price prediction by considering the environmental factor. The experimental results suggest that there is a negative linear relationship between air pollution and the stock market, which demonstrates that air pollution has a negative effect on the financial market. It promotes the manufacturer’s improving their emission recycling and encourages them to invest in green manufacture—otherwise, the drop in stock price will impact the company funding process.

The Paris Agreement 5 Years Later: The Challenges of Climate Finance and Multilateral Development Banks

In all matters regarding climate change, the modern world presents complex challenges which highlight how investments in infrastructure have as of yet been inconclusive. The emission percentages calculated by relevant studies demonstrate the need for long-term investments in infrastructures, to ultimately reduce the impact on the environment and our health. To this end, in alignment with the principles expressed in the Paris Agreement – reducing global warming and incentivising a zero-emission transportation system – and the Sustainable Development Goals (SDGs), these new infrastructures will require a structural change that can be guaranteed by multilateral development banks (MDBs), given their nature, especially within developing countries. MDBs play an important role in supporting local governments, on the one hand creating a prosperous environment for sustainable infrastructures and, on the other, providing innovative financial instruments that could increase the financial sector’s participation. In this paper, aft er a brief excursus on the Paris Agreement’s role in the global climatic crisis, there will be an evaluation of the relations between MDBs and climate finance, with a focus on green bonds.