BEIJING Jan 22 China must increase spending on
emission cuts and clean technologies by 2 trillion yuan ($330
billion) to do its fair share to halt climate change, a report
by Beijing's Central University of Finance and Economics said.
It urged the government to raise money from carbon markets
to fund investments.
The report's conclusion contrasted with China's official
policy that the main responsibility for ramping up action
against climate change rests with developed nations.
China, the world's biggest-emitting nation, has already
pledged to spend 520 billion yuan to help prevent global
temperatures from rising more than 2C, according to Chen Bo,
co-author of the report.
But that is only a fifth of what is needed if China -
trailing only the United States on the list of history's biggest
carbon emitters - is to shoulder a proportionate burden in
global efforts to stop climate change, the report said.
The main responsibility for ratcheting up the extra funds
should fall on the government, it said.
"Public funding is essential to address climate change
problems, and without a clear signal on CO2 emissions,
mitigation projects are not financially attractive to
investors," said the report.
It called on the government to use carbon markets to auction
CO2 permits to help raise climate revenue.
Over the past seven months, five regional pilot trading
schemes have launched in China, with plans to roll out a
national market later in the decade.
One of those markets, southern Guangdong, auctions 29
million permits annually to participating firms, but the revenue
is not earmarked for climate change spending.
The report, which has been submitted to the State Council,
China's cabinet, said the state-owned China Development Bank
should set up a green investment department to stimulate private
and public investment in climate-related projects.
It further urged the financial market to develop products
and mechanisms to draw further funds.
(Reporting by Kathy Chen and Stian Reklev, editing by Mark