Seven areas of China and building Green Green bonds financial standards need

Polaris solar PV net news: in China, driven by green finance for the first time been included in the agenda of the G20 Summit, and is written to the annual bulletin. The people’s Bank of China and the Bank of England’s Green finance research group submitted to the G20 Summit of the Group of 20 green comprehensive financial report.

Meanwhile, China will become the world’s first Green State of the financial system. Recently, the people’s Bank of China, the Ministry of finance and other seven departments jointly issued the guidelines on the construction of green financial system (hereinafter referred to as the guidelines).


Seven areas of China and building Green Green bonds financial standards need unity

Of the guidance of the Central leading group on comprehensive reform, held from August 30 27th meeting consideration and adoption. So-called green financial means to support environmental improvement, climate change and economic activity of the economical and efficient use of resources, environmental protection, energy-saving, clean energy, green transportation, green building projects in the area of financing, project, operations, risk management, and the provision of financial services.

Analysis of the Research Bureau of people’s Bank of China Chief Economist, MA told reporters, to achieve the goal of controlling environmental pollution in China and in the year 2030 or targets for carbon emissions to peak before international commitments this year need 3 trillion to 4 trillion yuan investment in green. Estimated financial resources can only cover about 15% of green investment in the industry, so most of the green investment required from the Social Fund.

“The publication of guidance, marking the highest level strategic level to the relevant ministries had formed a high degree of common, fully committed to support and promote green investment and financing to accelerate the transition to a green economy. “Ma analyzed.

Department of environmental analysis of the Tao, Deputy Director of the policy and regulations Division, told reporters, in the “Thirteen-Five” achieving environmental quality objectives and targets for the period, government funding alone is not enough, through the innovative green system of financial policy to attract social capital into the field of eco-environmental protection in China while promoting financial industry to the rapid transition to green.

Green bond standards need unity

According to guide views, green financial system including seven a basic field: a is vigorously development green credit; II is promoted securities market support green investment; three is established Green Development Fund, through Government and social capital cooperation (PPP) mode mobilization social capital; four is development green insurance; five is perfect environment interests trading market, and rich financing tool; six is support place development green financial; seven is promoted carried out green financial international cooperation.

Guide views proposed, through again loan (that bank to financial institutions provides lower cost of funds to support green credit and green investment), and professional guarantees mechanism (to reduced green project of risk premium), and financial discount (to reduced enterprise by paid of green credit of financing cost), way to support green credit; exploration will green credit into macro carefully assessment framework, on has good green performance of Bank be must of incentive.

On the Green stock, set out in the guidelines, establishing and perfecting the unified criterion of green bonds, clear disclosure requirements and regulatory arrangements for the issuance of green bonds and so on. Issuance of green bonds support eligible agencies and related products to improve approval (filing) efficiency.

End of 2015, the people’s Bank of China and China Finance Association of green Finance Committee also released Green finance debt announcement and the Green bonds support directory (2015), launched the Green bond market in China; Development and Reform Commission and the two stock exchanges since then have been issued a green corporate bonds and green corporate guidelines.

Yi gang, Deputy Governor of the Central Bank introduced the first 7 months of this year, China’s issuance of green bonds has nearly 120 billion yuan, accounting for 40% per cent of global issuance of green bonds simultaneously, China has become the world’s largest green-bond market.

“The national development and Reform Commission and the Chinese monetary society green Finance Committee has published the Green bonds and Bank green bonds support directory, but both support directory on the definition of green bonds is not fully unified, there may be companies take this arbitrage issues, hence the need to strengthen the coordination, harmonization of standards. “Ma analyzed.

Ma introduced in the field of green stock of third party certification bodies, there are three local and four foreign-backed certification bodies, various certification bodies assessment results may have some differences on the Green bonds, influence the quality of assessment, which also needs to be unified as soon as possible.

Reduce the financing costs of green bonds, Ma said, the State will support local and market institutions through professional guarantee and enhance trust and mechanisms to support the issuance of green bonds and to develop other measures helped to reduce the cost of green bonds.

Set out in the guidelines, in accordance with the premise of the issuing and listing of relevant laws and regulations, policies, and actively support the issuance and listing of qualified green businesses in accordance with legal procedures. Support green business issue already on the market, such as refinancing. Encouraging pension funds, insurance funds and other long-term funds to carry out green investment, encouraged investors to release green investment reports.

“Currently has a waiting green audit of IPO companies a lot, to be able to generate a listing of priority for investment in clean technologies is a major plus, it is a securities regulatory authorities of further policies. “Pan-analysis of the Valley Director of venture investments in clean technologies, told reporters.

CSI Ma Xianfeng, Deputy Director of the finance Research Institute of the SFC to reporters, the guidance said “green business” will make reference to Chinese monetary society green Finance Committee on the scope of the list of green bonds support (2015 version), specifically how to define needs to be further studied.

In addition, the guidelines require, supports the development of green bonds index, green, stock indices, and related products. Encourages financial institutions to green indices based on public, private equity and other green products meet the needs of investors.

Xianfeng Ma introduced Green stock index in China at present a total of 19, into sustainability index, index of environmental protection industry and green environment and three categories, only a total of about 2%, about 20% compared with developed securities market still has great room for development.

Explore carbon emissions futures trading

The guidelines first proposed the establishment of a National Fund for green development.

Ma described, from an international perspective, such as China Green Development Fund established at the national level, is one of the Central Government’s strong commitment to green development. A comparable case is founded in 2012 the United Kingdom Green Investment Bank. Although this institution called “banks”, but it cannot deposit-taking, not debt, is in fact a Green Fund.

“Green Development Fund’s initial idea was that relating to the integration of economic construction Department of the Ministry the following energy-saving, environmental protection and renewable energy-related funds, the establishment of a new Green Development Fund. “Treasury official told 21st century business Herald reporter, but details such as the form and mode of operation of the Fund, in the study.

Energy researcher, told reporters, recommends that the National Development Fund for green as the Government guiding funds, as a market-oriented private equity fund to operate.

The guidance also suggested that the environmental high risk areas to establish environmental liability insurance system. Tao explains, enterprise in the event of environmental damage, insurance institutions according to law to pay the victims of pollution, provide reasonable security to restore normal life and production, reduce the burden on Government and society, and also avoid the pollution damage caused in the production operation difficult predicament.

Noteworthy is that the guidance requires the development of carbon finance products, orderly development forwards, carbon, carbon, carbon, carbon rental option bonds, carbon and carbon such as carbon funds of asset securitization and derivative financial products, research on carbon emissions futures trading.

Analysis of Ma, this will encourage the banking, securities, insurance, participation of the funds and other financial institutions, promote the formation of large-scale transactions of institutional arrangements and financial transactions. Carbon markets will also include various types of future carbon benefits in support of or against (MS) delay of loans and financing through bond and stock markets.

China Beijing environmental Exchange CEO Mei Dewen of reporters, Beijing environment Exchange has launched a carbon quota buy-back product such as CITIC Securities, OTC swaps, green leasing, green investment funds, PPP business, and some products are in the research and presentation.

Analysis of Xianfeng Ma, current conditions are not ripe for listing national carbon futures contracts can be carbon spot market for further development on the basis of, gradually establish the carbon futures market.

In addition, the guidance also suggested that development based on carbon emission, emissions, energy conservation (right) and other types of financing tool for environmental rights, widening financing channels for enterprises.

Original title: seven areas of China and building green finance green investments will reach 3 trillion or 4 trillion

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