Core Insights - The CFA Institute and Phoenix TV co-hosted the "2025 China Investment Forum," focusing on sustainable investment paradigms, green industrial transformation, and ESG talent cultivation [1] - The forum is a parallel event to the "2025 Zero Carbon Mission International Climate Summit," gathering leaders from the real economy and financial investment sectors to explore innovative and socially valuable sustainable development solutions [1] Group 1: Climate Change and Economic Impact - Zhang Xiaoyan, Vice Dean of Tsinghua University Wudaokou School of Finance, highlighted that global temperatures have been rising since 1950, significantly impacting the world [3] - According to the World Economic Forum, by 2050, climate change could lead to 14.5 million deaths and an economic loss of $12.5 trillion [3] - Despite international uncertainties, China remains committed to achieving its "carbon peak and carbon neutrality" goals and actively promotes green transformation [3] Group 2: Carbon Market Challenges - Zhang pointed out that the current carbon market faces significant issues, including concentrated trading during compliance seasons, resulting in low liquidity with turnover rates below 5% [4] - The market primarily relies on bulk agreements, lacking continuous pricing and price discovery mechanisms [4] - The limited market size and low carbon prices internationally fail to accurately reflect carbon risks [4] Group 3: Recommendations for Improvement - Zhang suggested improving the quota allocation system, advocating for a shift from free allocation to auction mechanisms to better reflect carbon risk prices [4] - It was recommended that carbon quotas be dynamically adjusted annually to enhance market activity [4] - Additional suggestions included expanding market participants by introducing financial institutions, developing carbon futures and options for risk management, and promoting alignment with international carbon market rules [5]