Chinese Version

Ma Jun: Current state of China's Green Finance

Time:2017-12-18 From: Author:

On December 11, during the "Earth Summit" in Paris, the French Ministry of Finance and the European Association of Financial Markets in Paris hosted the "2017 Climate Financing Day", attended by more than 400 delegates from dozens of countries and international organizations The meeting. Ma Jun made a keynote speech at the meeting, introducing the efforts made by China in developing green finance and promoting the formation of an international consensus on green finance in recent years.


In recent years, marked by the "Guiding Opinions on Building a Green Financial System" promulgated by the seven ministries and commissions such as the People's Bank of China, China has established a relatively complete policy framework for developing a green financial system. This guidance and the subsequent division of labor programs have provided a series of policy arrangements in terms of clarifying the definition of green finance, providing incentives, strengthening disclosure of environmental information, supporting the innovation of green financial products, promoting green finance in local governments and preventing the risks of washing green. It has also assigned tasks to specific departments and set specific timetables for implementing these divisions.


With the vigorous promotion by the Chinese government, China has made rapid progress in many green finance fields. In 2016, China's green bond market became the largest green bond market in the world. So far, about 50 green funds have been launched or participated in by the local governments in China, and more than 200 green funds have been launched by social capital. China started green finance pilot projects in five provinces and eight cities in China. Most of the pilot areas have launched specific programs and effective measures. Financial institutions and third-party agencies have promoted a host of innovative green financial products and analytical tools, including green ABS, green building insurance, green new energy insurance, green indices and products, environmental stress testing methods, and green rating methods. The regulatory authorities have proposed a specific timetable for setting up a mandatory environmental information disclosure system covering all listed companies. Greenpeace is organizing pilot projects for China's financial institutions to carry out environmental information disclosure. Greenpeace will also set up a green project library to provide an information platform for China's green projects and the docking of domestic and foreign financial resources.


Regarding international cooperation, China included green finance in the G20 agenda in 2016 and initiated the G20 Green Finance Study Group. A number of initiatives put forward by the group to promote global green finance were included in the 2016 G20 Hangzhou Summit Communiqué and the Hamburg G20 Action Plan 2017, which provided an important impetus for the mainstreaming of green finance. In September this year, seven Chinese industry associations, including the Green Committee, jointly launched the "Environmental Risk Advice for China's Outward Investment" and provided concrete and actionable content for China to promote the greening of the "Belt and Road" investment. China hopes more international forces will jointly participate in promoting the green process of "the Belt and Road".


Although China, France and many countries have made positive progress in green finance, the share of green finance in the overall financial system remains low. From an international perspective, green finance still faces such problems and challenges as weak incentive mechanism, lack of standards, limited implementation capacity and inadequate product tools. G20 should continue to promote green and sustainable finance. Central banks and financial regulatory authorities in all countries should strengthen exchanges and cooperation and further explore their positive role they can play in promoting green finance and coping with climate change.


Author: People's Bank of China Special Adviser to the President and Director of Green Finance Committee of China Society for Finance Ma Jun


Source: Choi new net