ESG investing is gaining momentum in China: so-called \u2018green panda bonds<\/strong>\u2019 thrive amid further opening-up of China\u2019s financial markets and allow foreign issuers to tap into its onshore bond market, based on China-EU common ground taxonomy.<\/p>\nDomestic investor appetite for green assets can help fund the investment needs of companies\u2019 transition to low carbon and climate resilient operations. On the equities side, Chinese Depository Receipts (CDR)<\/strong> offer international companies listing opportunities in China. Different equities offer exposure to sustainable investment themes and the performance is linked to shares or indices from ecological, ethical and social sectors.<\/p>\nFurthermore, Zhu introduced the voluntary carbon market as an important element to generate private investment necessary for decarbonizing the global economy and mitigating climate change; and forecasted continuing significant market growth.<\/p>\n<\/div>
There are two main categories of voluntary carbon credits:<\/h3><\/div>- <\/i><\/span>
reduction\/ avoidance credits that reduce or avoid greenhouse gas emissions<\/div><\/li>
- <\/i><\/span>
removal credits that actively capture greenhouse gas emissions.<\/div><\/li><\/ul>
The voluntary carbon market is designed to support corporates who seek to offset their residual or unavoidable emissions and gives companies the opportunity to purchase carbon offsets from verified suppliers. The revenues collected are used to finance carbon reduction projects.<\/p>\n<\/div>
Green taxes and incentives: best practices for German companies<\/h3><\/div>Ms. Iris Pang, Tax Partner and Ms. Stacie Cui, Tax Senior Manager, PwC China, introduced China\u2019s Green Taxes and Green Incentives landscape. They not only provided an overview on a broad range of applicable regulations and categories, but also described challenges in implementation and sharing practical best-practice approaches for German companies in China.<\/p>\n
Green taxes are imposed on environmentally harmful business activities, such as pollution, energy consumption, carbon emissions, fuel consumption, waste production and disposal, use of natural resources, motor vehicles and transport.<\/p>\n
The case study on a battery producer showed diverse opportunities to leverage green tax incentives along entire value and supply chains<\/strong>, encouraging taxpayers to undertake eco-friendly adjustments of their business activities, leading to significant tax reduction in various tax categories.<\/p>\n<\/div><\/div><\/div><\/div><\/div>
![\"Green](\"https:\/\/www.germancentre.com\/wp-content\/uploads\/2023\/05\/green-finance-event.jpg\" "\\"green-finance-event\\"")
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