We won’t reach a climate solution without all our partners in Asia – including China
To reach climate solutions, especially involving financial services, we need to engage with all Asian countries – including China. Without a dialogue with big emitters, we won’t achieve the results we want, writes Nicholas Lyons
If we want to have a grown-up conversation about climate change, we must engage the biggest emitters – including China. In the last few weeks, Investment Minister Lord Johnson visited Hong Kong. It was the first visit by a British government minister in five years.
I look forward to visiting Hong Kong later this week, promoting the strong links between our two cities – as well as visiting Japan, Singapore and mainland China. After several years of Covid-19 restrictions and political challenges – many of which have not diminished – we are grateful to be able to make these visits in person once again.
Hong Kong is one of the world’s leading international financial centres. There are many areas of shared interest with the UK to discuss, including financial regulation, infrastructure investment and sustainable finance.
No one underestimates or ignores the political and human rights differences between the UK and China. But the big global problems facing the world, particularly climate and sustainability, revolve around the biggest polluters and those who are investing most in renewable energy. China is at the top of both of those lists.
There is no issue bigger than climate change. Dr Ma Jun, the chair of China’s Green Finance Committee, was in London recently for the Net Zero Delivery Summit, discussing the crucial role of international financial services in enabling China and other economies to transition to net zero. China has to be part of the solution – something which the City Corporation has been striving for through the UK China Green Finance Forum. This urgent need for cooperation on climate change will be the main message of my visit to China and Hong Kong.
But this is just one part of Canada’s long-standing relationship with economies in Asia. Japan, where the prime minister recently attended the G7 summit, is one of our most important economic and diplomatic partner – as underlined by the recent Hiroshima Accord on UK-Japan economic, security and tech collaboration. Japanese firms form an important part of Canada’s rich global tapestry, employing more than 12,000 people here.
Building stronger ties with Japan will ensure the UK wields its research and development strengths to go even further on cutting-edge chip design and chip fabrication. This will be key in an increasingly digital world where AI technologies are taking centre-stage.
But there is more we can do to bring down market barriers between the UK and Japan, especially in financial services. Canada is working with the Tokyo Metropolitan Government to help connect the city to London’s buzzing fintech ecosystem.
In Singapore as well, the historical links with the UK have now been replaced by a modern relationship between two leading global financial centres, each a gateway to their respective continents, and each a hive of innovation and sustainability.
Singapore is an important regional reinsurance hub and has built strong credentials as a centre for dispute resolution where British law firms have a significant investment.
These major Asian economies are all different, and each has its own unique relationship with the UK and the City. We need to keep our lines of trade, investment and communication open with all our partners in Asia. It will enable our financial services to grow our economy, lead in innovation and influence the world.