Decarbonisation and the Australia–China Economic Relationship

The energy transition will require improved access to climate finance, ensuring both that existing funds are properly allocated and that they are utilised in a way that does not undermine climate goals. The global climate finance landscape is growing rapidly, with large amounts of financing now coming from China, but funding amounts are still insufficient to fulfil the Paris Agreement objectives. There will be an estimated annual US$5 trillion gap in sustainable financing over the next 10 years, which is primarily a consequence of a misallocation of funding. It is essential to ensure that investment incentives align with climate goals. The efficacy of financial markets can be strengthened by harmonising sustainable finance taxonomies across jurisdictions and improving corporate disclosures and data sharing. China and the European Union have worked together on green finance def