The website of the People's Bank of China reported on April 10 that the "Guiding Opinions on Further Strengthening Financial Support for Green and Low-Carbon Development" issued by the seven departments pointed out that in the next five years, an internationally leading financial support for green and low-carbon development system will be basically built; By 2035, various economic and financial green and low-carbon policies will be promoted in a coordinated and efficient manner, the standard system and policy support system for financial support for green and low-carbon development will become more mature, and the functions of resource allocation, risk management and market pricing will be better utilized.

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People's Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Finance, Ministry of Ecology and Environment, General Administration of Financial Supervision, China Securities Regulatory Commission

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Guiding Opinions on Further Strengthening Financial Support for Green and Low-Carbon Development

Shanghai Headquarters of the People's Bank of China, branches of provinces, autonomous regions, municipalities directly under the Central Government and cities separately listed in the plan, development and reform commissions of provinces, autonomous regions, municipalities directly under the Central Government and cities separately listed in the plan, Xinjiang Production and Construction Corps, industry and information technology authorities, finance departments (bureaus), ecological environment departments (bureaus), supervision bureaus of the State Financial Supervision and Administration, and securities regulatory bureaus of the China Securities Regulatory Commission:

In order to implement the major decisions and arrangements of the Party Central Committee and the State Council on carbon peaking and carbon neutrality, do a good job in green finance, and actively support green and low-carbon development, with the consent of the State Council, the following opinions are hereby put forward.

1. Overall requirements

(1) Guiding ideology.

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will fully implement the spirit of the 20th National Congress of the Communist Party of China, thoroughly implement Xi Jinping Thought on Ecological Civilization, adhere to the general tone of the work of seeking progress while maintaining stability, base ourselves on the new development stage, and implement the new completely, accurately and comprehensively. Development concept, accelerate the construction of a new development pattern, focus on promoting high-quality development, further strengthen financial support for green and low-carbon development, and unswervingly follow a high-quality development path that prioritizes ecology, thrift and intensifies, green and low-carbon. In order to ensure national energy security and help carbon peak and carbon neutrality form strong support.

(2) Working principles.

--Coordinate development and security. Coordinate high-quality development and high-level security, increase financial support for green and low-carbon development, coordinate the promotion of carbon reduction, pollution reduction, green expansion, and growth, strengthen risk identification and management, and promote the construction of new energy systems and the transformation of energy enterprises. Prevent and resolve risks during the process, ensure the safety of food, energy resources, important industrial chains and supply chains, and the normal life of the people, and provide strong support for high-quality economic development.

--Take into account the long-term and present. Adhere to the system concept, strengthen forward-looking thinking and overall planning, scientifically and orderly promote carbon peak and carbon neutrality, based on China's energy resource endowment, take advantage of the momentum, establish first and then break, and rationally plan and implement financial support for carbon emission reduction. Short-term, medium and long-term tasks, promote various tasks to start as soon as possible and continue to work hard, promote green finance reform and innovation in a steady and orderly manner, and better serve green and low-carbon development.

--Pay equal attention to incentives and constraints. Give full play to the decisive role of the market in resource allocation, better play the role of the government, guide financial resources to support green and low-carbon transformation of high-emission industries and the construction of renewable energy projects, promote green industrial transformation and upgrading, and support green and low-carbon transportation and green buildings development. Strictly control the investment of financial resources in high-energy-consuming, high-emission, and low-level projects.

--Adhere to high standards of promotion and high-level cooperation. In accordance with the national green and low-carbon development strategy, scientifically formulate and standardize the implementation of clear and enforceable green finance and transformation finance standards, and promote the compatibility of Chinese standards with the international standard system. Actively participate in global governance to address climate change, actively lead global green finance issues, contribute Chinese wisdom to the global response to climate change, and strengthen the domestic application of mature international experience and the international promotion of domestic useful experience.

(3) Main goals.

In the next five years, the international leading financial support green and low-carbon development system will be basically established, financial infrastructure, environmental information disclosure, risk management, financial products and markets, policy support system and green finance standard system will be continuously improved, green finance regional reform will be promoted in an orderly manner, international cooperation will be closer, and various element resources will be gathered in the green and low-carbon field in an orderly manner.

By 2035, various economic and financial green and low-carbon policies will be promoted in a coordinated and efficient manner, the standard system and policy support system for financial support for green and low-carbon development will be more mature, and the functions of resource allocation, risk management and market pricing will be better played.

2. Optimize the green finance standard system

(4) Promote the financial system to gradually carry out carbon accounting. Establish and improve carbon accounting methods and databases for financial institutions, strive to promote the application of mature carbon accounting methods and results in the financial system, formulate and promulgate unified carbon accounting standards for financial institutions and financial businesses, and promote financial institutions to strengthen their own and their investment and financing related businesses. Management and statistics of carbon emissions data. Improve the standardization, authority and transparency of carbon accounting for financial institutions. Encourage financial institutions and enterprises to use big data, financial technology and other technical means to provide technical support for carbon accounting.

(5) continuously improve the system of green financial standards. Formulate a unified system of green financial standards. We will continue to optimize China's green bond standards, unify the use of funds raised by green bonds, information disclosure and regulatory requirements, and improve the evaluation and certification standards for green bonds. We will further optimize the "green channel" system arrangements for the application and acceptance of green corporate bonds and the examination and registration of green corporate bonds, so as to enhance the convenience for enterprises to issue green bonds. Study and formulate the recommended guidelines, green bond carbon accounting methods and disclosure standards for low-carbon projects in the Green Bond support Project Catalog, and require bond issuers to calculate and disclose the carbon reduction and carbon emissions of the projects supported by the funds raised. We will improve green bond statistics, gradually build a green financial statistical system that can measure the effect of carbon emission reduction, and fully reflect the effectiveness of financial support for the construction of ecological civilization. We will further improve the green credit standard system. Establish and improve green insurance standards. Study and formulate green stock standards and unify green stock business rules. Timely promote itemized accounting, disclosure and statistics of greenhouse gases. We will speed up the research and formulation of industrial green development guidance catalogue and project library, and vigorously support green technology innovation. Support the establishment of a standard system for climate investment and financing projects. We will speed up the study and formulation of financial standards for transformation, include qualified industrial green development projects in the scope of support, and clarify the core elements such as the catalogue of transformation activities, disclosure requirements, product system and incentive mechanism.

3. Strengthen the restraint mechanism based on information disclosure

(6) Promote financial institutions and financing entities to carry out environmental information disclosure. Step by step, explore and establish an environmental information disclosure system covering different types of financial institutions, and promote relevant listed companies and bond issuers to disclose environmental information in accordance with the law. Formulate and improve the information disclosure guidelines for sustainable development of listed companies, and guide listed companies to disclose sustainable development information. Improve the carbon emission information disclosure framework, encourage financial institutions to disclose exposure to high-carbon assets and establish an emergency disclosure mechanism for climate change-related risk emergencies. Regular disclosure of green finance statistics.

(7) Continuously improve the quality of environmental information disclosure and assessment. Study and improve the guidelines for environmental information disclosure of financial institutions. Encourage credit rating agencies to establish and improve rating systems for green financial products, and support credit rating agencies to incorporate environmental, social and governance (ESG) factors into credit rating methods and models. Promote data sharing of environmental information and carbon emission information disclosed in accordance with the law by key pollutant discharge units, enterprises that implement mandatory cleaner production audits, relevant listed companies and bond issuing companies. Give full play to the role of the national industry and finance cooperation platform, establish an information sharing mechanism for industrial green development, and promote the docking of cross-departmental, multi-dimensional, and high-value green data.

4. Promote the development of green financial products and markets

(8) Promote the construction of a carbon emissions trading market. In accordance with relevant policies, regulations and technical specifications of carbon market, carry out carbon emission right registration, trading and settlement activities, and strengthen carbon emission accounting, reporting and verification. Study and enrich financial products and trading methods linked to carbon emission rights, and gradually expand the scope of trading entities suitable for the development of China's carbon market. Reasonably control the total amount of carbon emission quota issuance and scientifically allocate the initial carbon emission quota. Enhance carbon market liquidity and optimize carbon market pricing mechanism.

(9) Increase green credit support. On the premise of legal compliance, controllable risks and commercial sustainability, financial institutions are encouraged to use green finance standards or transitional finance standards to increase credit support for green development and low-carbon transformation in energy, industry, transportation, construction and other fields., optimize green credit processes, products and services. Explore market-oriented methods to provide credit enhancement services for overseas financing by domestic entities and reduce risks in overseas financial activities. Strengthen the construction of supporting infrastructure for Supply Chain Finance and promote the innovation and application of green supply chain.

(10) further increase the support of the capital market for green and low-carbon development. Support qualified enterprises to list financing or refinancing at home and abroad, and raise funds for the construction and operation of green and low-carbon projects. We will vigorously support qualified enterprises and financial institutions to issue green bonds and green asset-backed securities. We will actively develop carbon-neutral bonds and bonds linked to sustainable development. Support qualified infrastructure projects such as clean energy to issue real estate investment trust (REITs) products. Support local governments to bring qualified ecological and environmental protection and other construction projects into the scope of local government bond support. Strengthen the financial support for the eco-environment-oriented development model (EOD) and improve the relevant investment and financing models. Study and promote the development of green asset management products on the premise of compliance with the law and controllable risks. Standardize the investment and financing business of green bonds and green equity. Overseas institutions are encouraged to issue green panda bonds and invest in domestic green bonds. Support securities funds and related investment industries to develop green investment products to better fulfill their environmental, social and governance responsibilities. We will increase financial support for tackling and popularizing major green and low-carbon technologies, strengthen the layout of basic research and cutting-edge technologies, and speed up the research and development and promotion of advanced and applicable technologies.

(11) Vigorously develop green insurance and services. Improve the insurance protection system for major risks related to climate change. Provide disaster prevention and loss prevention early warning services to high-risk customers, promptly investigate potential risks, and reduce claims risks. Give full play to the long-term investment characteristics of insurance funds, encourage insurance funds to support green industries and green projects in accordance with commercialization principles, and optimize the long-term investment ability assessment mechanism. Encourage insurance institutions to study and establish a mechanism to link corporate carbon emission levels and insurance pricing. Promote the development of new energy vehicle insurance.

(12) Strengthen the participants in the green financial market. Promote sustainable investment concepts and attract long-term institutional investors such as pension insurance funds to invest in green financial products. Banking financial institutions are encouraged to build branches with green finance characteristics and incorporate green finance development into the assessment system of financial institutions. Financial institutions with conditions and willingness are encouraged to adopt or sign international principles or initiatives on the theme of green finance and sustainable finance. Provide convenient financial services for foreign investors to allocate domestic green financial assets in the links of transaction account establishment, trading, registration, clearing, settlement, capital exchange and cross-border remittance and remittance. Those involving carbon asset business shall be managed in accordance with the domestic performance requirements of the Paris Agreement.

5. Strengthen policy coordination and institutional guarantees

(13) Promote the improvement of laws and regulations. Give full play to the role of the rule of law in consolidating the foundation, stabilizing expectations, and benefiting the long term, promote legislation in the field of green finance, and promote financial support for green transformation and low-carbon development. Encourage qualified places to take the lead in introducing local green finance regulations in accordance with the law. Study and clarify the social responsibilities of commercial banks in green finance and credit review due diligence exemption requirements.

(14) Improve the green finance assessment and evaluation mechanism of financial institutions. Carry out policy follow-up and evaluation from time to time, continue to optimize the green finance evaluation mechanism, and improve and strengthen the information notification mechanism for financial support for green and low-carbon development. Increase the assessment and evaluation of the green finance business and capabilities of financial institutions, gradually include green funds and overseas green financial assets held by financial institutions into green finance evaluations, and enrich the application scenarios of evaluation results. Encourage financial institutions to guide the green allocation of financial resources by adjusting internal fund transfer pricing and economic capital occupation, and continuously optimize the asset structure of financial institutions. Incorporate financial support for carbon peak and carbon neutrality into the assessment of senior managers of financial institutions.

(15) Enrich relevant monetary policy tools. Make good use of carbon emission reduction support tools, provide low-cost funds to eligible financial institutions, and support financial institutions to provide preferential interest rate financing to key projects with significant carbon emission reduction benefits. Promote the greening of asset allocation of the Central Bank, gradually incorporate sustainability into the long-term operation and management objectives of foreign exchange reserves, and continue to invest in green bonds.

(16) Support the green and low-carbon transformation of high-emission industries and high-emission projects. Give full play to the demonstration and leading role of the National Green Development Fund. Encourage qualified financial institutions and social capital to set up carbon peak carbon neutralization transformation fund. Guide financial institutions to support clean transportation, clean heating and ultra-low emission transformation of key industries, vigorously support the research and development, investment, promotion and application of clean energy, continue to promote clean and efficient utilization of coal, and encourage financial resources to favor enterprises with high environmental performance grades. Support the issuance of transformation bonds to meet the needs of low-carbon transformation such as transformation and upgrading of energy production and consumption enterprises above designated size. Link the carbon emission reduction information of high-emission industries and high-emission projects with project credit evaluation and credit system construction. Promote green and low-carbon transformation and digital and intelligent upgrading of high-emission industries.

(17) Deepen regional reform of green finance. Steadily and orderly explore green finance development and reform paths with regional characteristics, and do a good job in summarizing and evaluating pilot areas and promoting experience. Carry out the upgrading and expansion of the green finance reform and innovation pilot zone in an orderly manner. Support qualified places to carry out climate investment and financing pilots, and explore the establishment of climate-friendly investment and financing systems and mechanisms. Promote green finance standards to be piloted in the green finance reform and innovation pilot zone, support the establishment of a high-standard green project library and achieve interconnection.

(18) Further support green development in major national and regional strategies. Promote the positive interaction between the development of onshore green financial markets, the construction of Shanghai International Financial Center and the internationalization of RMB, and enhance the international influence of RMB green product pricing. Establish and improve the Yangtze River Delta environmental information sharing mechanism and promote the first promotion of the green financial information management system in the Yangtze River Delta region. Support the development of green financial industries in the implementation of major national and regional strategies such as the Beijing-Tianjin-Hebei, Guangdong-Hong Kong-Macao Greater Bay Area, and build an internationally recognized green bond certification institution.

6. Strengthen prudent management and risk prevention related to climate change

(19) Improve prudent management. Gradually incorporate climate change-related risks into the macro-prudential policy framework, guide financial institutions to support green and low-carbon development, and promote financial institutions to regularly report information on the scale, proportion and risk exposure of high-carbon assets to financial management departments. Timely disclose the results of stress tests on climate change-related risks in China's financial system. Based on climate change-related risks, study and improve risk supervision indicators and assessment methods.

(20) Enhance the ability of financial institutions to respond to risks. Promote financial institutions to incorporate climate change-related risks into risk control systems and corporate governance frameworks. Financial institutions are encouraged to use tools and methods such as climate risk stress testing and scenario analysis to carry out climate risk assessments, improve internal control systems, policy tools and management processes, and effectively respond to transformation risks. Promote insurance institutions to establish climate change-related risk assessment and prediction models, and use big data and other technical means to carry out climate disaster risk analysis.

7. Strengthen international cooperation

(21) Deepen green finance cooperation. Actively participate in multilateral and bilateral green finance cooperation mechanisms such as the G20 (G20), the Financial Stability Board (FSB), the Green Finance Network of Central Banks and Regulators (NGFS), the International Platform for Sustainable Finance (IPSF), the Bank for International Settlements (BIS), and the Basel Committee on Banking Supervision (BCBS), the Sustainable Banking and Financial Network (SBFN), and the International Organization of Securities Commissions (IOSCO). Actively participate in the formulation of international standards for green finance and promote the compatibility of Chinese standards with the international standard system. Promote the interconnection of domestic and international green financial products and services, and facilitate cross-border green investment by Chinese and foreign investors.

(22) Promote green investment in the Belt and Road Initiative. Encourage banks, equity investment institutions, fund companies and other financial institutions to carry out green and low-carbon investment in countries and regions jointly building the Belt and Road Initiative.

8. Strengthen organizational guarantees

(23) Strengthen organizational leadership and form a synergy for development. Uphold and strengthen the party's overall leadership, resolutely safeguard the authority and centralized and unified leadership of the Party Central Committee, strengthen coordination and cooperation among departments that support green and low-carbon development, and form a synergy between financial support for green and low-carbon development. Strengthen behavioral supervision and functional supervision of green finance, improve early risk identification, early warning, and early disposal capabilities, and report major matters to the Party Central Committee and the State Council in a timely manner. Strengthen information sharing among relevant departments, strengthen communication between financial institutions and enterprises, guide enterprises to effectively carry out green transformation and technological transformation, and promote the smooth implementation of financial support for green and low-carbon policies. Promote local governments to adapt to local conditions, clarify the division of responsibilities, establish rules and regulations, and ensure the effective implementation of various policies for financial support for green and low-carbon development. Strengthen the publicity of financial support for green and low-carbon development and create a good atmosphere for green finance development.

(24) Strengthen green finance capacity building. Strengthen academic exchanges and cooperation, promote the construction of disciplines and majors related to green finance, and carry out basic and forward-looking research on major topics related to financial support for green and low-carbon development. Vigorously carry out green finance training and promote financial management departments, financial institutions and third-party institutions to improve their green finance capabilities. Support financial institutions to conduct technical exchanges with domestic and foreign peer institutions on climate risk stress testing, scenario analysis, etc., and further strengthen financial capacity building to support green and low-carbon development.

people's Bank of China

National Development and Reform Commission

Ministry of Industry and Information Technology

Ministry of Finance

Ministry of Ecology and Environment

General Administration of Financial Supervision

China Securities Regulatory Commission

27 March 2024