China's Belt and Road should be green - and green-financed

CHINA'S Belt-&-Road Initiative is being billed by President Xi Jinping as "the project of the century". But this ambitious trade network that will encompass almost two-thirds of the world's population and 29 per cent of global GDP must also be economically sustainable and environmentally friendly.

The initiative aims to increase infrastructure investment and promote cross-border trade so that goods, services and capital can flow easily on land - the "belt" that connects China, Central Asia, Russia and Europe - and by sea, the "road" that links China to South-east Asia, India and Africa. It effectively creates a New Silk Road.

Infrastructure provides the lifeblood of an economy. Energy systems power homes and factories, transport systems get people to work, water supplies maintain good health. Through a virtuous cycle, infrastructure investment drives economic growth that in turn drives further infrastructure demand.