(The 4th CIIE) Depth｜How does green finance achieve "new and never tire of old"?

　　China News Agency, Shanghai, November 6th (Reporter Xia Bin) The concept of sustainable development and the urgent need to address climate change have enabled countries to embark on a low-carbon transition path, which will also set a new direction for the development of the international financial industry-green finance Push to the front of the stage.

　　On the one hand, we need to develop new financial tools and look for green projects. On the other hand, the financial needs of traditional industries to transform and upgrade are urgent and important, and we cannot ignore them. How can green finance achieve “new and never tire of old”?

At the 4th CIIE held here, the guests discussed.

　　Jacques Ribeau, chief executive of Crédit Agricole, said that in order to achieve the goals of the Paris Agreement, it is estimated that the annual demand for green finance investment will reach 27 trillion US dollars before 2050.

"Most industrial structures are bound to be transformed or upgraded. This will be a comprehensive change."

　　To fill up the capital needs, financial support is strongly supported.

Jacques Ribo said that at present, green bonds are the first to provide financial support for designated projects, and the market share has reached 20%; a series of other sustainable bonds have also begun to provide funding sources for green finance.

　　Take China as an example. In the past five years, China has actively promoted the development of green finance. Today, China’s green loan balance and green bond stock are among the top in the world. The quality of green assets is generally good, and the non-performing rate of green loans is significantly lower than the average non-performing loans. There is no default case for green bonds.

　　China’s green finance innovation experiment has also started simultaneously: relying on the Shanghai Environment and Energy Exchange, Shanghai has made breakthroughs in the pledge of national certified voluntary emission reductions, carbon funds, and carbon trust; Types of projects provide three different interest discount mechanisms; the Macau Association of Banks, in conjunction with the Guangzhou Carbon Emissions Exchange and all walks of life in Guangdong, Hong Kong and Macau, has initially established a carbon emission credit collateral financing standard system, creating cooperation between Guangdong, Hong Kong and Macau in the field of green finance standard construction. Precedent...

　　But this is far from enough.

　　Chen Yulu, deputy governor of the People’s Bank of China, stated that the central bank will continue to strengthen its protection and support for green finance, and provide low-cost financial support to eligible financial institutions through the establishment of carbon emission reduction support tools and other incentive mechanisms, and support financial institutions to Key projects with significant carbon emission reduction effects provide preferential interest rate financing, leveraging more social funds to promote carbon emission reduction.

　　The "living water" of green finance will not only flow to new projects and new areas.

　　"The green economy should not only pay attention to low-carbon, clean energy and other'pure green' projects, but also pay attention to economic projects in the transformation of'high-carbon' industries." said Yao Jian, deputy director of the Liaison Office in Macau.

　　Du Jiaqi, chairman of HSBC Group, believes that the financial industry must play a key role in rationally guiding and allocating funds.

The most in need of financial industry support is often some traditional high-carbon industries that require innovative financial products to achieve technological and business model transformation.

　　“The transition from high-carbon investment and financing activities to low-carbon activities requires a lot of financial support, but the existing green financial system cannot fully cover the entire transitional financial activities.” Chen Yulu emphasized that it is necessary to conduct in-depth research on how to establish the defining standards of transition finance. Disclosure requirements, incentive mechanisms, and system supporting measures are gradually being incorporated into the investment and financing arrangements related to transition finance in the existing financial framework.

　　However, there are many "keys" to launch more green financial products that meet demand.

　　Du Jiaqi pointed out that high-quality data is essential.

Financial institutions need to have a detailed understanding of the company's sustainable development strategy, carbon footprint, current implementation measures, and possible adjustments to achieve net-zero commitments in the future.

Only in this way can we develop truly meaningful green financial products and formulate effective policies.

　　Ma Jun, director of the Green Finance Professional Committee of the Chinese Financial Society, reminded that if there is no good green standard, there may be many fake projects, and the market may cause bad money to drive out good money, and green funds may not come in.

　　Ma Jun suggested that in order to prevent risks, it is necessary to have a relatively complete green financial disclosure system and standard system.

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