Monthly Report on Green Finance Policies in China (September 2021)

Interpretation of key policies

1.“Market-based Assessment and Evaluation Operation Rules for Green Bond Verification and Certification Agencies (Trial)” September 2021- Green Bond Standard Committee

The Rules (trial) are an industry self-regulatory policy to regulate the conduct of green bond verification and certification agencies, aiming to improve the quality of green bond verification and certification, and promote green bonds development. The Rules stipulate that verification and certification agencies should meet the conditions listed in the Green Bond Verification and Certification Practice Guidelines (temporary) and obtain registration documents from the Green Bond Standard Committee, and define the application steps, contents and application of results for market-based assessment and evaluation. Accompanying documents were also released, including the Market-based Assessment and Evaluation Criteria for Green Bond Verification and Certification Agencies and the Market-based Assessment and Evaluation Material List for Green Bond Verification and Certification Agencies. Among them, the Criteria cover fields such as assessment of eligibility and business operation, assessment from green bond related self-regulatory organizations and infrastructures, assessment from issuers, assessment from investors, assessment from experts in the environmental field, and assessment from Green Bond Standard Committee, as well as the corresponding assessment indicators and assessment contents. While the Material List covers documents required for the filing of verification and certification agencies, including the assessment information form, assessment instructions and other required documents.

2.“Opinions on Deepening the Reform of the Ecological Protection Compensation System” September 2021- General Office of the Central Committee of the Communist Party of China and General Office of the State Council

The Opinions, which apply nationwide, are an important guiding policy on the planning and construction of ecological protection compensation system. The Opinions suggest that various green financial instruments should be adopted and market mechanisms should be brought into play. First, the market transaction mechanism should be improved; the unified registration of natural resources rights should be accelerated; a clearly attributable property rights system for natural resources assets should be established with clear rights and responsibilities, strict protection, smooth flow and effective supervision; a system for the paid use of natural resources assets should be improved that reflects market supply and demand and the scarcity of resources, ecological values and inter-generational compensation; and reasonable compensation should be given to the rights holders for fulfilling their obligations to protect natural resources assets. On the premise of reasonable and scientific control of the total compensation amount, an allocation system of water usage rights, pollution emission rights and carbon emission rights should be established, and market-based environmental rights trading should be carried out. Second, market-based financing channels should be expanded, financing instruments based on various types of resource and environmental rights and interests should be studied, a green stock index should be established, carbon emission rights futures trading should be developed, and the scope of pilot green financial reform and innovation zones should be expanded. The Opinions also suggest exploring diversified compensation methods and support the development of relevant ecological and environmental education and training, special industries and green products production.

3.“The Plan for Improving the Dual Control System for Energy Consumption Intensity and Total Volume” September 2021- National Development and Reform Commission 

The Plan is a national policy aimed at further improving the dual control system for energy consumption. It proposes to improve economic policies and the green financial system, to improve the green financial standard system and policy measures, and to provide full-dimensional support for energy conservation. In particular, it proposes that for “two high”[1] projects that do not meet relevant requirements, the energy saving review and environmental assessment approval at local levels should be strictly conducted, and financial institutions should not provide credit support.

 

 

4.“The Implementation Program for Accelerating the Establishment of a Sound Green, Low-Carbon and Circular Development Economic System in Fujian Province” September 2021- Fujian Provincial People's Government

The Program is a local guiding policy for building a green, low-carbon and circular development system in Fujian Province. It proposes to study and introduce supporting policies for green finance, promote the construction of provincial-level green financial reform pilot zones in Sanming and Nanping, and support eligible areas to file for national-level green financial reform and innovation pilot zones. It also proposes to strengthen the evaluation and assessment of financial institutions' green financial performance. Green financial services should be deepened, and financial institutions are encouraged to: increase green loans and support new green infrastructure; innovate green credit and green direct financing models, extend green insurance services, and guide and encourage the issuance of green bonds; support eligible green industry enterprises to go public and raise funds. To encourage carbon finance innovations such as quota pledge financing and carbon bonds and; improve the linkage mechanism between environmental credit evaluation and green finance. The Program also mentions the need to improve the green trading market mechanism and promote the construction of a market for trading resource and environmental rights such as emission rights, energy usage rights, carbon emission rights and water usage rights.

5.“The Implementation Program for Green Finance Work in Heilongjiang Province” September 2021- Heilongjiang Provincial People's Government

The Program is a special local green finance policy aimed at guiding and promoting the construction of a green financial system in Heilongjiang Province. The Program proposes, first, to build a multi-level financial system, including establishing a green financial franchise system, accelerating the development of green industry funds and building a green guarantee mechanism. Second, to build a diversified product and service system, including promoting the innovation of green credit products, improving green credit services, mobilizing green bond financing, vigorously promoting the listing of green enterprises and innovating green insurance products and services. Third, build a multi-dimensional infrastructure system, including establishing a province-wide green enterprise database, improving the green financial evaluation system, establishing a sound green payment system, accelerating the establishment of a green credit system, establishing an environmental information disclosure system, exploring the construction of a carbon emission trading system, promoting green and low-carbon development in agriculture, enhancing the capacity of forestry carbon sinks and exploring the value conversion mechanism of natural ecological products. Fourth, build a multi-level policy support system, including the establishment of a monetary policy tools supporting system, optimizing the green credit risk sharing mechanism and promoting green finance pilots; Fifth, build an all-round risk prevention and control system, including a green investment risk supervision system and a green credit risk monitoring and assessment mechanism; Sixth, increase international cooperation in green finance, especially by relying on the construction of the China (Heilongjiang) Pilot Free Trade Zone, actively carry out green financial cooperation with Russia.

 

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 the internet.

Jurisdiction	Title	Purpose	Actor	Publication Date	Link
Nationwide	“Market-based Assessment and Evaluation Operation Rules for Green Bond Verification and Certification Agencies (Trial)”	To improve the quality of green bond verification and certification, and promote green bonds development	Green Bond Standard Committee	24 September, 2021	http://www.nafmii.org.cn/ggtz/gg/202109/P020210924701031232199.pdf
Nationwide	“Opinions on Deepening the Reform of the Ecological Protection Compensation System”	To adopt green financial instruments and bring market mechanisms into play for the construction of ecological protection compensation system	General Office of the Central Committee of the Communist Party of China and General Office of the State Council	12 September, 2021	http://www.gov.cn/zhengce/2021-09/12/content_5636905.htm
Nationwide	“The Plan for Improving the Dual Control System for Energy Consumption Intensity and Total Volume”	Use green finance as a tool for energy consumption control	National Development and Reform Commission	11 September, 2021	https://www.ndrc.gov.cn/xwdt/tzgg/202109/t20210916_1296857.html?code=&st...
Beijing	“Opinions on Financial Support for Beijing's Green, Low-Carbon and High-Quality Development”	Further enhance the systematic, professional and precise financial support for Beijing's green and low-carbon development	8 Departments including Department of Business Administration of the People's Bank of China, Beijing Banking and Insurance Regulatory Bureau, Beijing Securities Regulatory Bureau and others	25 August, 2021	http://bj.people.com.cn/n2/2021/0906/c82839-34901334.html
Chongqing	“Measures for the Management of the Chongqing Eco-Product Value Realization Platform by the name "Carbon Huitong" (Trial)”	Building a platform for realizing the value of ecological products, promoting the implementation of the carbon target with green financial instruments, and accelerating green and low-carbon development	Chongqing Municipal People's Government	22 September, 2021	http://www.cq.gov.cn/zwgk/zfxxgkml/wlzcxx/hmlm/whszfbm/202109/t20210922_...
Fujian Province	“Implementation Plan for Accelerating the Establishment of a Sound Economic System for Green, Low Carbon and Circular Development in Fujian Province”	Build a sound green financial system to accelerate green, low-carbon and circular economy development in Fujian Province	Fujian Provincial People's Government	14 September, 2021	https://www.fujian.gov.cn/zwgk/zfxxgk/szfwj/jgzz/fzggwjzc/202109/t202109...
Guangdong Province	“Guangdong Province Action Plan for Deepening the Reform of Market-based Allocation of Capital Elements”	Green Finance helps with the capital allocation capabilities of the Guangdong, Hong Kong and Macao Greater Bay Area	Guangdong Provincial People's Government	4 September, 2021	http://www.gd.gov.cn/zwgk/wjk/qbwj/yfh/content/post_3518060.html
Hainan Province	“Implementation Plan for Implementing the Opinions on Financial Support for Hainan's Comprehensively Deepening Reform and Opening-up”	Green finance supports the comprehensively deepening reform and opening-up of Hainan	General Office of Hainan Provincial People's Government	1 September, 2021	https://www.hainan.gov.cn/hainan/szfbgtwj/202109/6f56dfd0fde842fbb8ab55d...
Heilongjiang Province	“The Implementation Program for Green Finance Work in Heilongjiang Province”	Realise the positive role of green finance in restructuring, transforming and promoting the green and low-carbon development of industries	Heilongjiang Provincial People's Government	2 September, 2021	https://zwgk.hlj.gov.cn/zwgk/publicInfo/detail?id=449784
Jilin Province	“Implementation Opinions of the People's Government of Jilin Province on Accelerating the Establishment of a Sound Economic System for Green, Low-Carbon and Circular Development”	Developing a green financial system in Jilin	Jilin Provincial People's Government	3 September, 2021	http://xxgk.jl.gov.cn/szf/gkml/202109/t20210903_8206891.html
Inner Mongolia Autonomous Region	“Notice of the People's Government of Inner Mongolia Autonomous Region on Specific Measures to Accelerate the Establishment of a Sound Economic System for Green, Low-Carbon and Circular Development”	Developing a green financial system in Inner Mongolia	Inner Mongolia People's Government	24 September, 2021	https://www.nmg.gov.cn/zwgk/zfxxgk/zfxxgkml/gzxzgfxwj/xzgfxwj/202109/t20...
Shaanxi Province	“Notice of the People's Government of Shaanxi Province on the Issuance of Several Measures to Accelerate the Establishment of a Sound Economic System for Green, Low-Carbon and Circular Development”	Developing green finance and fostering green trading market mechanism	Shaanxi Provincial People's Government	29 September, 2021	http://www.shaanxi.gov.cn/zfxxgk/fdzdgknr/zcwj/szfwj/szf/202109/t2021092...
Shandong Province	“Notice of the People's Government of Shandong Province on Issuing the List of Policies for Implementing "Six Stable"[2] and "Six Guarantees"[3] to Promote High-Quality Development (Fourth Batch)”	Formulation and introduction of policies on green finance to support ecological environmental protection and the development of ecological and environmental industries	People's Government of Shandong Province	3 September, 2021	http://www.shandong.gov.cn/art/2021/9/3/art_107851_114059.html
Shandong Province	“Opinions on Supporting the Development of Carbon Emission Rights Credit and Pledge Loans”	Promoting the Standardization and Scale-up of Carbon Emission Rights Credit and Pledge Loans	People's Bank of China Jinan Branch, together with Shandong Provincial Department of Ecology and Environment, Shandong Provincial Local Financial Supervision Bureau and Shandong Banking and Insurance Regulatory Bureau	1 September, 2021	http://www.shandong.gov.cn/art/2021/9/4/art_97564_429145.html
Wuhan City, Hubei Province	“Work Program to Promote Carbon Reduction and Development of Low Carbon Industries in Wuhan City”	Promote the comprehensive green transition of Wuhan's economy and society	Wuhan Municipal People's Government	4 September, 2021	http://www.wuhan.gov.cn/zwgk/xxgk/zfwj/bgtwj/202109/t20210909_1775253.shtml
Wuxi City, Jiangsu Province	“Opinions of the Wuxi Municipal Central Sub-Branch of the People's Bank of China on Promoting Green Inclusive Finance”	Promoting the integration and synergistic development of green finance and inclusive finance	Wuxi Branch of the People's Bank of China	24 September, 2021	http://nanjing.pbc.gov.cn/nanjing/117525/4348880/index.html