Development financial institutions play a vital role in the process of sustainable development. In this issue we present the responsibility of development finance in terms of environmental and social safeguard and provide the accountability mechanism of World Bank and Asia Development Bank as example.
By this mid-April, a total of 57 countries covering five continents have applied to join Asian Infrastructure Investment Bank. The AIIB will mainly invest in infrastructure construction.The AIIB charter will be signed before the end of June, 2015. The bank will feature a three-level management structure that includes a board of governors, board of directors and senior management with effective supervision mechanism to guarantee efficiency and transparency. Also, AIIB has showed their positive attitude towards learning and adopting global experience.
The China-led development banks are developing quickly, and will soon create additional financial flows to regional and global projects. These new platforms are likely to have a significant global impact, and therefore there is pressure on them to adopt high standards and appropriate safeguards. Earlier this year, the environmental ministers from the BRICS countries met and discussed the green economy and the prospect of creating a green fund within the BRICS New Development Bank. Last week, Britain applied to join the Asian Infrastructure Investment Bank (AIIB), and is likely to be followed by more EU countries like Germany, France and Italy.The pressure is now building on the AIIB to develop strong policies to govern its future operations.
Global infrastructure is having more development opportunities as development of regional economic integration highlights the importance of regional and inter-regional interconnection infrastructure.
In 2013, the FDI to Africa is 3.37billion USD, with an increase rate of 33.9%. By the end of 2013, there are nearly 3000 Chinese overseas enterprises in 45 countries of total 52 countries in Africa, making Africa the second largest destination of Chinese enterprises after Asia. It has been the fifth consecutive year that China has become Africa’s largest trading partner. Earlier this month, the president of South Africa together with a number of ministers visited China and highlighted the economic cooperation between Africa and China. Apart from emphasis on infrastructure construction, opportunities in clean energy are also mentioned. Cooperation in clean energy development with developing countries are consistent with China’s commitment to South-South cooperation on climate change and can also enable Chinese enterprises and financial institutions to benefit from the financing of climate actions.
As a Chinese NGO dedicated to environmental protection, Greenovation Hub has conducted this in-depth study of China’s mining industry in order to contribute to the on-going discussions regarding China’s progress in developing environmental and social standards for investment and finance. Backed by case studies from China, Peru, Laos and Cambodia, the report examines the development of China’s domestic and international mining industries, the impacts of this development and its environmental regulation.
Between June 2012 and December 2013, Greenovation Hub conducted an in-depth study of China’s mining industry. Backed by case studies from China, Peru, Laos and Cambodia, the report examines the development of China’s domestic and international mining industries, the impacts of this development and its environmental regulation. As a Chinese NGO dedicated to environmental protection, Greenovation Hub has conducted this research in order to contribute to the on-going discussions regarding China’s progress in developing environmental and social standards for investment and finance.
China’s investment in Latin America has continued to grow in recent years. China has become the Latin America’s third biggest source of foreign investment. According to the latest statistics from China’s Ministry of Commerce, in 2013, Latin America was the second largest recipient of China’s foreign direct investment after Asia. In 2013 the investment increased over 130% on the amount in 2012.
China’s impact on global investment and trade becomes ever more important as its economy continues to grow. As a major contributor of overseas investment, China has the responsibility to reflect upon its development model; to reduce its global footprint; and to actively participate and promote transformation towards a greener economy. The process of “Going Out” should also be the process of “Bringing In”. As a local Chinese NGO, Greenovation Hub is focusing on environment and development with international outlook. We will deliver this periodic “Observation” on China’s oversea investment and its global ecological impact to promote awareness and understanding.
