World Business Council for Sustainable Development China Forum Hubei - July 2024

In today's geo-political environment, for an EU-HQ'd international NGO to set up a new office in China, its is a pretty big call.

For that office to be in Wuhan after all its been through is an even bigger call.

So as I prepped for my trip to WBCSD's inaugural "Two Lakes Dialogue" (thanks for the flag CBCSD Beijing) I ended up down quite a rabbit hole of Wuhan, Wuchang, WBCSD and China's Sustainable Business industry.

Great to also see the increased presence of the International Financial Reporting Standards Foundation International Sustainability Standards Board on board with this event also.

WBCSD Two Lakes Dialogue

Following the requisite Government-led opening plenary, the thematic sessions on Day One of Green transport, Renewable Energy and Sustainable Agriculture follow some standard global topics of interest. A great mix if international and local (mainland) businesses.

Will be taking some particular interest in the Sustainable Agriculture stream with a particular focus on opportunities for Australian Wine sector to contribute to China's high-quality wine industry development, while promoting the natural advantages of Australia's Sustainable Winegrowing activities. Penfolds

WBCSD China closely involved with the World Agri-Food Innovation Forum on again in Beijing this October. Hoping to announce more on a program for this involving Australian businesses later in July.

Henkel 梅赛德斯-奔驰中国 Yokogawa 德勤 Panasonic Sinopec International Petroleum Service Corporation JA Solar BloombergNEF CLP Griffith Foods 盒马 Rabobank Syngenta TetraPakWorld

Presentation content and new learnings aside, of greatest interest to me will be who from the big multi-nationals will actually be in the room. CBCSD has some strong domestic members. WBCSD making this push to accelerate international collaboration.

Alas, only 2 Australian companies in attendance (3 including me!)

A real big push for international recognition and participation here from China. Top efforts from China Council for the Promotion of International Commerce Hubei (CCPIT).

Anglo-splaining & Greenwashing

Aside from the travel footprint (yes, I offset!), it will also be interesting to see how deep the questions go into the need for accelerated industrial transformation globally.

And how much we (foreign companies) can actually learn from China. And how China can, and wants to learn from foreign companies.

More on this at CIFTIS Environment Services event in Beijing in September.

It's a standard challenge for Western companies entering the China market (and there advisors ;-) to need to balance the "anglo-splaining" of our colonial heritage with the "we're here to help" required in this new eras of "collaborative commerce".

Seeing and hearing just how committed China is to this will be eagerly anticipated.

If any international media are on hand to cover it will be another thing.

The big shift in my observation (and expectation) from this gathering will be recognition from foreign companies of the sheer scale and speed of China's corporate embrace of Sustainable Business Practices. And the eagerness and conviction of the global sustainable business community of China's role in driving global market transition.

And to see China's value-add potential back in home markets (ie: speed, knowhow, scale).

#netzerofastertogether

If you delve into the sustainability reports of some of the member companies, like new WBCSD member Alibaba, you see the level of commitment to this global green economy transition from companies in the market that has the greatest capacity to have a real impact on the speed of reductions in global emissions (whilst driving global GDP!).

CBCSD's May update on trends and scale an eye opener... (you're going to need to right-click for translate on your browser to read this Chinese 中国可持续发展工商理事会 WeChat public account report).

Or check out this China Sustainability Tribune local industry mag as an FYI.

Wuchang Clan

So COVID-ist brand perceptions aside, Wuhan is actually a really important city in China and occupies an area some 8,000km2 spanning both sides of the Yangtze River in Hubei.

15 million people all doing the do. Its a big town.

Its a water town.

Its an industrial town.

Its a historical town.

The origins of Wuhan are stemmed in its geography, (merger Wuchang & Hankou towns), however as is the way in modern China its role in shaping the destiny of the new era of China's transformation is just as important.

Not to diss the US hip-hop community but there really is a LOT more to Wuchang than East-coast tunes.

There is history in Wuchang that is still felt deep in the DNA of the PRC from with the Taiping Revolution, the Wuchang Uprising, the Xinhai Revolution and Japanese occupation.

COVID was bad yes, but Wuhan has seen worse.

China's green, "high-quality", low-carbon future - Wuhan

Its not until you dive into the site visits, the co-organisers of the event, and the program for Day 2 that you begin to see the strategy behind the Hubei Governments support for WBCSD settling their China office in Wuhan.

Carbon markets. Carbon finance. Carbon accounting. Carbon footprint. Carbon reduction and Industrial decarbonisation are the BIG new industries of China's future.

And the big boys are turning up to share.

滴滴 壳牌 西门子 Alibaba Cloud SinoCarbon Innovation & Investment Co., Ltd. BloombergNEF The Integrity Council for the Voluntary Carbon Market (ICVCM) China National Petroleum Corporation Decathlon World Resources Institute (WRI) China

In 2021 China Carbon Emissions Registration and Clearing Co., Ltd. was incorporated in Hubei and now acts as the registrar for the National ETS Market.

On 22 January 2024 China officially relaunched the China Certified Emission Reduction (CCER) scheme, which is a milestone step in establishing the voluntary carbon market in China (the National CCER Scheme).?

The framework of the voluntary standard applicable under this scheme is similar to other internationally recognised voluntary standards (such as Verra and Gold Standard), whilst the implementation details are subject to PRC specific regulatory requirements.

And so its only after the realisation that the new home for WBCSD in Wuhan is in the office of the Wuhan Carbon Exchange Trading House (second National trading base to Shanghai) that you se the logic in the collaboration.

Co-host Hubei Hongtai Group is the parent company of China Carbon Emission Registration Clearing, China HuBei Emissions Exchange, Hubei Huizhi "Carbon Neutral" Private Equity Fund Management. They are now focussed on clean/ renewable energy investment, green financial innovation and international ESG cooperation.

The Hubei Carbon Emissions Trading Center ("Hubei Carbon Exchange") is one of the first national carbon emission trading pilot institutions registered with the national Ministry of Ecological Environment and approved by the Hubei Provincial Government. It was originally established in 2012 and is a subsidiary of Hubei Hongtai Group. Hubei Carbon Exchange is responsible for the management of the two factor market platforms of Hubei Environmental Resources Trading Center and Wuhan International Mining Rights Trading Center.

Wuhan is China's national climate investment and financing pilot zone, integrating with the national carbon market and local green finance and emissions trading. Plenty to learn.

Looking forward to updating local market back in with Australia.

Great to be joining the few Australian companies attending Treasury Wine Estates .

And also, very much looking forward to visiting the Wuchang factory (and taking for a spin) the rather US-looking muscle SUV, the Dongfeng Motor Co. subsidiary M-Hero (SASAC-owned SOE). 猛士科技 - another EV brand relatively unknown outside China.

See you on the other side.

WBCSD – World Business Council for Sustainable Development Department of Climate Change, Energy, the Environment and Water Australian Department of Foreign Affairs and Trade Australian Trade and Investment Commission (Austrade) China International Fair for Trade in Services-CIFTIS Green Building Council of Australia South Australian Chamber of Mines & Energy (SACOME) Carbon Market Institute (CMI) Australia New Zealand Biochar Industry Group (ANZBIG)