China-Singapore Jingwei, April 17 (Ma Jing) With the advancement of the "dual carbon" goal, green finance has become a key link.
From April 16th to 17th, at the 2022 Tsinghua PBCSF Global Financial Forum, many experts discussed how green finance can serve the "dual carbon" goal.
Zhu Min, Dean of the National Institute of Financial Research of Tsinghua University and former Vice President of the International Monetary Fund, believes that under the trend of carbon neutrality, serving the real economy and carbon neutrality is to build a zero-carbon financial system, which is a huge challenge. , but it is also an opportunity and starting point for China to build a new Chinese model financial system.
At present, the whole world is at the same starting point. The financial industry should seize this opportunity to build a zero-carbon financial system in the process of supporting the real economy, and walk ahead of the world.
Zhu Min, Dean of the National Institute of Financial Research of Tsinghua University and former Vice President of the International Monetary Fund Source: Organizer
"Currently green financial products are still administratively priced"
China has become one of the largest green finance markets in the world.
According to data previously released by the central bank, at the end of 2021, China's green loan balance was 15.9 trillion yuan, a year-on-year increase of 33%, ranking first in the world.
In 2021, the issuance of domestic green bonds will exceed 600 billion yuan, a year-on-year increase of 180%, and the balance will reach 1.1 trillion yuan.
However, many experts pointed out that the current practice of green finance development in China still has a long way to go to meet the needs of the "dual carbon" goal.
"On the whole, by the end of 2020, green finance will only account for 4.6% of the total financing, and green bonds will account for 0.73% of the stock of bank bonds, which is a very low proportion. In green finance, banks are the mainstay of issuance. The proportion of green credit in China is as high as 90%, far exceeding the 60.2% proportion of RMB loans in the total stock of social financing. As we all know, a considerable part of zero-carbon finance requires bonds in the capital market. It is natural to rely on bank credit to support green financing. The short board is that the risk preference does not match and is inconvenient. At the same time, the investment is unstable, the risk cycle is relatively long, and we also lack a perfect green mechanism." Zhu Min believes that in this sense,
from the current narrow environmental protection to the current Fundamental zero carbon to support the carbon neutrality of the entire economy, and fundamentally change China's economic structure, a new financial model of economic ecology, this is a great challenge, but also a great opportunity.
He Ping, associate dean of the School of Economics and Management, Tsinghua University, professor and head of the Department of Finance, believes that, from a strictly market-oriented definition, China's
current
green financial products, including green loans and green bonds, are all quasi-financial products.
The pricing of the credit rating is not market-oriented. For example, for green loans, it is said that the interest rate is cut by 0.5. How did the 0.5 come from? Is it because the corporate credit rating adopts green measures to bring a lower default rate, so is 0.5 suitable? No. This is not fundamentally different from the fiscal means and carbon tax we have adopted, and it still belongs to administrative pricing.”
He Ping believes that the most in need of improvement and improvement in the green financial market is the pricing of green financial products. In the future, the only pricing of green prices is that it may bring about differences in corporate profits or differences in default rates, which will be reflected in the prices of green products. .
Zhang Xiaoyan mentioned from the structure of green financial products that at
present, ESG investment in the Chinese market is mainly based on credit, funds, bonds, and fixed income. However, in comparison, many countries pay more attention to equity products.
Therefore, China's green investment and financing system is still in its infancy and acceleration stage, and there is a lot of room for improvement in the future.
Source of Roundtable Discussion on Green Finance Development under the "Dual Carbon" Goal: Organizer
"Developing a transformational strategy and policy framework is the biggest challenge for the financial industry today"
At this forum, many experts also gave suggestions and directions for the development of green finance.
He Ping believes that a complete carbon emission trading accounting system needs to be established to scientifically distribute carbon emission rights among producers, as well as forestry producers and growers, or determine the conversion ratio of carbon sinks and carbon emission rights, and balance Development trends and production incentives for carbon sequestration and emissions across society.
"Information disclosure is an important foundation for the market mechanism to play an effective role, and it is also an important criterion for investors to clearly identify relevant risks, benefits and costs. At the same time, it is also an important starting point for supervision, which can not only improve the transparency of the market It is also an important means to maintain market discipline." Tan Congyan, vice president of the China Securities Financial Research Institute, mentioned that China's information disclosure is currently being continuously improved, and it can continue to make efforts in the future, including occupying a place in the formulation of international rules, Formulate standards based on national conditions, effectively connect with the existing information disclosure system, clarify the purpose of information disclosure, and establish a complete disclosure system.
Zhang Xiaoyan mentioned that in addition to doing a good job in supporting measures such as information disclosure and market supervision, it is also necessary to pay attention to the education of investors on the investment
side
, pay attention to the strength of institutional investors, and encourage them to make green and zero-carbon investments.
In other words, the stock market returns of the green industry are very good, and I hope that the trading platform and supervision will build a sound green market service system and relevant policies for investment and financing.”
Wang Xin, director of the Research Bureau of the People’s Bank of China, emphasized that attention to financial support and climate change also requires attention to biodiversity conservation, “
We now generally believe that biodiversity loss and climate change may lead to systemic financial risks, which is important The source of systemic financial risks.
Only by effectively preventing related financial risks can we ensure financial stability and long-term success.”
Wang Xin revealed that the central bank has already carried out a climate change stress test for financial institutions, that is, a micro-level test, when it comes to dealing with the financial risks of biodiversity and climate change.
In addition, research is underway through macroeconomic changes that may affect the industry, thereby affecting the financial risk performance of financial institutions, that is, macro-level stress tests.
"The entire carbon neutrality is actually a fundamentally subversive reconstruction of China's future economic development model, as well as the entire economic structure, from high carbon to low carbon, energy revolution, economic innovation reshape the entire manufacturing industry. The financial industry must be in this process. In the process of realizing carbon neutrality, in order to play the key role of finance and resolve financial risks and many other problems, we need to start from the construction of a macro framework.
Zhu Min said that
we need to formulate a transformation strategy, path and policy framework. At this stage, the transformation strategy and policy framework of the financial industry are particularly important,
building a new risk appetite, incentive mechanism, disclosure system, service innovation under the goal of carbon neutrality, Building a risk management system, scenario analysis and stress testing, fully preparing from strategies and technologies to governance mechanisms, and preparing data and digital foundations, knowledge capabilities, and talent reserves are the biggest challenges facing the financial industry now.
(Sino-Singapore Jingwei APP)
(The opinions in this article are for reference only and do not constitute investment advice. Investment is risky, and you need to be cautious when entering the market.)
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Responsible editor: Wei Wei