The Investment Association of China (IAC), the Yangtze River Delta (YRD) Financial Industrial Park, and Zhong Lun Law Firm, jointly announced a proposal for green finance in the YRD to support China’s carbon neutrality target, as reported by Shanghai Securities News on December 17. The proposal listed nine measures to speed up green finance development in the area, including complying with the 14th Five-Year Plan to tackle climate change, reducing carbon emissions, and pushing for formulation and implementation of green finance systems in the region.

As part of efforts to achieve carbon neutrality in 2060, the proposal puts forward the construction of a regional carbon market in the YRD, as well as low-carbon or even zero-carbon demonstration plots. Moreover, by developing green finance in the YRD, the proposal also involves guiding capital to invest in green industries and sustainable energy and establish more financial institutions that focus on green projects.

Specifically, the opening ceremony of the YRD Financial Industrial Park was also on December 17, and it focused on topics such as innovative finance, green finance and related services for enterprises in the YRD. Deputy Director of Shanghai Municipal Financial Regulatory Bureau, Li Jun, expressed that the authority will support the YRD to apply for a national green finance reform and innovation pilot zone. If successful, the YRD will explore green finance architecture policies, create green finance products and services, set up a set of unified green finance service standards, support incentive and restraint mechanisms, and more. At present, Bank of Communications , Shanghai Pudong Development Bank , and Shanghai Rural Commercial Bank have already created their own YRD branches or management headquarters, while China Pacific Insurance is considering an entity in the region for collaborations in green insurance.

Sources:

https://news.cnstock.com/news,bwkx-202012-4632410.htm

http://finance.eastmoney.com/a/202012171741423918.html

https://www.shqp.gov.cn/english/news/20201103/800682.html

https://news.cnstock.com/news,bwkx-202012-4632344.htm