Sustainable Growth for China

The world's economic system and ecosystem have everything to gain by teasing apart the issues related to infrastructure and climate change in China. If China is to sustain its economic growth and improve its living standards over the next several decades, huge sums of capital will be needed to finance green infrastructure in energy and water. While cooperative approaches between government and the private sector are necessary, global capital markets can vet infrastructure projects and technologies to finance green infrastructure. The BOT and PPP approaches to financing infrastructure projects in China, based on "contract finance," have serious shortcomings. A more modern approach, based on "market finance," can raise the capital required for green infrastructure projects without creating undesirable consequences.