Interpretation of key policies
1. "The Green Bond Endorsed Projects Catalogue (2021 Edition)” April 2021 – The People’s Bank of China, The National Development and Reform Commission, The China Securities Regulatory Commission
The updated 2021 Edition of the catalogue marks China's significant progress in unifying domestic green finance standards and is China's latest and clearest definition of green. In the future, the identification of the "green" attributes of bonds will be based on the new version of the catalogue, regardless of its type or issuance market. The new catalogue will take effect on July 1.
The 2021 version of the catalogue follows a four-level structure. The first three levels are consistent with the Green Industry Catalogue released by the National Development and Reform Commission. The fourth level includes more detailed descriptions of specific economic activities. Compared with the Green Bond Endorsed Projects Catalogue (2015 Edition), the scope has changed a lot. The new version of the catalogue clarifies more specific technical standards and environmental standards than the consultation draft issued in 2020 and incorporates the “Do No Significant Harm” principle, bringing it closer to the EU classification scheme and global principles.
Guidance has been given to ensure the adaptation and transition from the previous Green Bond Endorsed Projects Catalogue (2015 Edition) and Guidelines for Issuing of Green Bonds (No. 3504 , Department of Fiscal and Financial Affairs, NDRC) to the Green Bond Catalogue (2021)’s new scopes and details. For bonds already in existence, approved or registered before the release of the Green Bond Catalogue (2021), their identification and capital usage can still be executed based on the Green Bond Endorsed Projects Catalogue (2015 Edition) and Guidelines for Issuing of Green Bonds. The issuer will need to report whether the capital usage conforms to the new Catalogue in their next mandatory disclosure. As to the bonds that have not been approved or have not completed the registration process prior to release, they should apply the Green Bond Catalogue (2021)
2. "Opinions on Establishing and Improving the Mechanism for Realizing the Value of Ecological Products" April 2021- The General Office of the Central Committee of the Communist Party of China, the General Office of the State Council
With the aim of setting out a pathway for realizing the value of ecological products, the Opinions state and encourage the use of water rights, forest rights and other usage rights mortgages, as well as green credit business such as order mortgages. It also explores the business of "ecological asset equity mortgage & project loan" and promotes green finance to support the improvement of ecological environment and green industries.
3. "Several Policies and Measures on Finance Services for supporting ‘Three High and Four New’ 1 Strategy in Hunan Province" April 2021- General Office of the People's Government of Hunan Province
The Measures specifically mention increasing financial support for green and low-carbon industries. The report refers to the use of carbon emission reduction tools. It promotes guiding financial institutions to carry out green loans by leveraging environmental rights mortgages such as pollution emission rights and carbon emission rights, increasing support for clean energy, energy conservation and environmental protection, and improving performance appraisal on green loan business. In addition, the Measures promote carrying out pilot green and climate finance innovation projects in Changsha, Zhuzhou, and Xiangtan cities and explores the coordination between climate finance standards (such as those in certification/information disclosure/mutual recognition of climate performance appraisal) and green finance investment standards. It also references promoting, establishing and improving the pollution liability insurance system.
1 “Three High and Four New” refers to Three Highlands and Four New Missions. Three Highlands refer to building of: 1. An important national advanced manufacturing highland; 2. A highland for technological innovation with core competitiveness; and 3. A highland for reform and opening-up in inland areas. The Four New Missions are: 1. To set up new paths to promote high-quality development; 2. To make new achievements in building a new landscape; 3. To demonstrate new responsibilities in promoting the rise of the central region and the development of the Yangtze River Economic Belt; 4. To work hard for a new chapter of Hunan province in building socialism with Chinese characteristics.
4. "Guangzhou City's Implementation Opinions on Promoting the Joint Construction of an International Financial Hub in the Guangdong-Hong Kong-Macao Greater Bay Area" April 2021- Guangzhou Leading Group for Promoting the Construction of the Guangdong-Hong Kong-Macao Greater Bay Area
The Implementation Opinions refer to multiple green financial instruments such as green bonds, green insurance, and environmental rights finance. The International Finance Hub will see multiple measures, including carrying out pilot projects, promoting information sharing, financial subsidies, etc., to promote the construction of green finance in the Greater Bay Area. The Implementation Opinions suggest: first, to deepen green finance reform and innovation, improve the market-oriented green financial system, and strengthen the innovation of green financial products; second, to match make green financial projects, establish project database, build platforms, and connect financial institutions with green enterprises and projects; third, to deepen green financial cooperation in the Greater Bay Area, encourage green project financing, certification, and the innovation and launch of green financial products.
5. “Guangzhou City's Three-Year Action Plan on Promoting the Joint Construction of an International Financial Hub in the Guangdong-Hong Kong-Macao Greater Bay Area (2021-2023)" April 2021- Guangzhou Leading Group for Promoting the Construction of the Guangdong-Hong Kong-Macao Greater Bay Area
The Action Plan starts with two overarching goals: improving the modern financial services system and promoting the interconnection of financial markets. It refers to the promotion of green financial product innovation, the establishment of platforms for green enterprises and projects, building-up of an environmental rights trading market, and an information sharing mechanism for enterprises and projects in the Greater Bay Area. It supports enterprises registered in Guangzhou to register and issue green debt financing instruments, and to issue green bonds in Hong Kong, Macau and overseas. The Action Plan improves the cooperation mechanism in the Greater Bay Area and give full play to the service role of Guangzhou Green Finance Research Institute and other institutions. It also strengthens the construction of Guangzhou Green Reform and Innovation Pilot Zone, and green industrial parks in various districts based on transformation and relying on industrial advantages.
Summary of recent policies
This summary of policies covers: 1) Policies issued by four-level government agencies: state, provinces and ministries, prefectures and cities, and counties in Mainland China. 2) Policies involving green bonds, green credit, green equity, green insurance, environmental finance and monetary policy. 3) Policies released publicly by governments and mainstream media through internet.
|Nationwide||"The Green Bond Endorsed Projects Catalogue (2021 Edition)”||Unifying domestic green finance standards||PBoC, NDRC, CSRC||1 April 2021|
|Nationwide||"Opinions on Establishing and Improving the Mechanism for Realizing the Value of Ecological Products"||Realizing the value of ecological products||The General Office of the Central Committee of the Communist Party of China, the General Office of the State Council||26 April 2021|
|Hunan Province||"Several Policies and Measures on Finance Services for supporting ‘Three High and Four New’ Strategy in Hunan Province"||Increase financial support to local green and low-carbon industries||General Office of the People's Government of Hunan Province||1 April 2021|
|Guizhou Province||The Bank Loan Policy Guidelines for Guizhou Province in 2021||Emphasize the need for promoting green finance||The PBoC Guiyang Central Branch||30 April 2021|
|Guangzhou, Guangdong Province||"Guangzhou City's Implementation Opinions on Promoting the Joint Construction of an International Financial Hub in the Guangdong-Hong Kong-Macao Greater Bay Area"||Three-step-approach to build Guangzhou into an International financial hub in GBA||Guangzhou Leading Group for Promoting the Construction of the Guangdong-Hong Kong-Macao Greater Bay Area||
25 March 2021
|Guangzhou, Guangdong Province||“Guangzhou City's Three-Year Action Plan on Promoting the Joint Construction of an International Financial Hub in the Guangdong-Hong Kong-Macao Greater Bay Area (2021-2023)"||Improving the modern financial services system, promoting the interconnection of financial markets||Guangzhou Leading Group for Promoting the Construction of the Guangdong-Hong Kong-Macao Greater Bay Area||
25 March 2021
|Qingdao, Shandong Province||"Implementation Plan for Promoting Green Buildings in Qingdao City”||By 2022, 100% of new-built civilian buildings will be green buildings||Qingdao Housing and Urban-Rural Development Bureau||14 April 2021|
|Nanjing Jiangbei New District, Jiangsu Province||"Action Plan of Peaking Carbon Emissions and Carbon Neutrality in Nanjing Jiangbei New District (Trial)"||Facilitating Jiangsu Province to take the lead in achieving Carbon Neutrality||Nanjing Jiangbei New District Government||15 April 2021||http://csj.xinhuanet.com/2021-04/15/c_139882359.ht|
Recommended citation: Climate Bonds Initiative & SynTao Green Finance Monthly Report on Green Finance Polices in China (March 2021)