On February 27, the General Office of the State Administration of Financial Supervision and Administration and the General Office of the People's Bank of China jointly issued the Circular on the Implementation Plan for the High-quality Development of Green Finance in Banking and Insurance Industry.
(1) Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the guiding ideology
comprehensively implements the spirit of the 20th National Congress and the Third Plenary Session of the 20th Central Committee of the Communist Party of China, thoroughly implements the economic thought of Xi Jinping and the thought of ecological civilization, firmly grasps the political and people's character of financial work, and strives to build a well-off society in an all-round way. Implementing the new development concept completely, accurately and comprehensively, deepening the structural reform of the financial supply side, practicing green development in an all-round way is the background of high-quality development, resolutely doing a good job in green finance, fostering and developing green productive forces, firmly promoting green and low-carbon development, vigorously promoting the comprehensive green transformation of economic and social development, and actively participating in it. Effectively help to achieve the goal of carbon peak and carbon neutralization on schedule.
(2) The basic principle
is to adhere to the principle of establishing first, then breaking down, and implementing classified policies. We should coordinate development and security, take into account both the current and the long-term, steadily and orderly promote the reform and development of green finance, support energy conservation, pollution reduction, carbon reduction, greening and disaster prevention in key industries and fields, ensure energy security and industrial chain and supply chain security, accelerate the green transformation of development mode, and help carbon reach its peak and carbon neutralization.
-Adhering to market orientation and innovation drive. Give full play to the decisive role of the market in the allocation of resources, better play the role of the government, and guide financial institutions to develop green finance in accordance with the principles of marketization and legalization. Guided by the needs of green and low-carbon transformation of economy and society, we should standardize and innovate green financial products and services, and improve the quality and efficiency of green financial services.
-Adhering to regulatory guidance and risk control. We will improve the policy system of financial support for green and low-carbon development, improve green financial standards and information disclosure requirements, and strengthen green financial supervision, evaluation and incentive constraints. Strengthen environmental, social and governance risk management, effectively identify, monitor and respond to various risks in the process of green and low-carbon transformation.
-Adhere to the concept of system and make concerted efforts. Strengthen the synergy and effectiveness of green financial policy and industrial policy, continuously optimize the economic policy toolbox to support green and low-carbon development, give full play to the leading role of green finance, and fully mobilize the enthusiasm of the government, enterprises, markets and other aspects. We should adhere to inclusiveness and mutual learning and strengthen international exchanges and cooperation in green finance.
2. Main objectives
In the next five years, a green financial system with perfect system, strong supervision, leading standards, complete organization, rich products and strict risk control will be basically established, which will play an important role in optimizing industrial structure, improving environmental quality and promoting energy transformation. Banking and insurance institutions have significantly enhanced their green financial professional service capabilities, effectively improved the level of carbon accounting, climate risk management and information disclosure, deepened international cooperation and exchanges, and gradually formed a multi-level, wide-coverage, diversified and sustainable green financial service system, which strongly supports the orderly promotion of carbon peak in key areas and regions. The proportion of green financial business in the business scale of banking and insurance institutions has increased significantly.
Banking and insurance institutions should focus on the green and low-carbon transformation of traditional industries, and strengthen medium- and long-term loan support for technological innovation and equipment upgrading in the fields of iron and steel, non-ferrous metals, petrochemical and chemical industries. Provide insurance risk protection to effectively meet the financial service needs of low carbon transformation in high energy consumption and high emission industries. We will promote more financial resources to serve the development of green industries, and foster strategic emerging industries and leading enterprises with obvious green and low-carbon effects. We will promote the development of a low-carbon transport system, support multimodal transport with railways and waterways as the backbone, and promote "public transit railway" and "public transit water". We will promote the green upgrading of infrastructure and the green and low-carbon development of urban and rural construction, and support green buildings, ultra-low energy consumption buildings and prefabricated buildings. Promote the efficient recycling of resources, support the recycling transformation of the park and the comprehensive utilization of bulk solid waste. We will support trade in green products with high quality, high technology and high added value, and promote the green and low-carbon construction of "the Belt and Road".
2. Banking and insurance institutions should focus on the production, construction and operation of new energy industries such as solar photovoltaic, wind power, hydropower, pumped storage, UHV, nuclear energy, energy storage, smart grid and micro-grid, as well as their renewal, upgrading and transformation, do a good job in project docking and credit support, strengthen financial risk provention and control, and provide life cycle insurance protection. Explore and improve the financial services of the whole industry chain of new energy vehicles, and increase financial support for charging infrastructure. We will explore financial services for biomass energy, geothermal energy and ocean energy, and promote the development of hydrogen energy, nuclear power and other energy sources in an orderly manner. Based on the actual national conditions and the characteristics of low-carbon transformation of the energy industry, we support the clean and efficient use of traditional energy. Do a good job of energy supply financial services to meet the reasonable financing needs of coal, electricity and coal enterprises.
3. Banking and insurance institutions should support pollution prevention and control, promote ultra-low emission transformation of key industries such as iron and steel, cement, coking and coal-fired boilers, comprehensive treatment of major rivers, important lakes and key sea areas, prevention and control of soil source pollution, heavy metal pollution, treatment of solid waste and new pollutants, and promote the construction of industrial and commercial bases. Help to defend the blue sky, clear water and pure land. We will implement the "Kunming-Montreal Global Biodiversity Framework", focusing on key national ecological function areas, ecological protection red lines and nature reserves, and increase support for major projects to protect and restore important ecosystems. Actively explore the market-oriented financing mode for the realization of the value of ecological products, explore and support the eco-oriented development (EOD) mode projects and regional environmental protection construction projects according to local conditions, and promote the transformation of ecological advantages to economic advantages. We will support the construction of national parks and land greening projects, support the construction of key ecological projects such as the "Three North" and help to enhance the diversity, stability and sustainability of ecosystems.
4. Banking and insurance institutions should actively support the construction of national and regional carbon trading markets and improve supporting financial services. Carbon finance related business should be carried out steadily and orderly around enterprise carbon quotas or national certified voluntary emission reductions (CCER). Conditional banking and insurance institutions are encouraged to make full use of carbon-related data such as enterprise carbon accounts and personal carbon accounts to actively expand green financial service scenarios related to carbon accounts. We will do a good job in financial docking of key climate investment and financing projects, and strengthen financial support for financial services to mitigate and adapt to climate change. We will actively support the development, popularization and application of green low-carbon technologies, and provide financial services around key core technologies of low-carbon, zero-carbon and negative carbon, such as clean energy, energy conservation and environmental protection, and carbon capture, utilization and storage (CCUS).
(2) Improving the green financial service system
5. Banking institutions should develop characteristic green financial products and services in accordance with their own endowments. Policy banks are encouraged to provide stable medium- and long-term financial support for the green development of important areas, key regions and major projects based on their own functional orientation. Large commercial banks should play a major role in serving the green transformation of the real economy, optimize the regional coordination and allocation of financial resources, and support key areas and weak links of the green industry. Joint-stock banks adhere to differentiated market positioning, deepen the subdivision of green industry and focus on financial services. Local corporate banks are deeply engaged in the local economy, reasonably determine the operating radius, and precisely serve the local green industry. Foreign banks play their own unique advantages to support the development of green industry.
6. Insurance companies should focus on serving the comprehensive green transformation of economic and social development, develop targeted risk protection schemes, and promote the quality and efficiency of green insurance business. Focus on key areas and key industries to give priority to providing green insurance risk protection, tap and dock industry risk characteristics and security needs, and strengthen the innovative development and replication of green insurance products. Enhance the professional ability of green insurance risk pricing, fine management, disaster prevention and loss prevention, optimize risk reduction services and management mechanisms, and better provide risk protection for green low-carbon development.
7. Banking institutions shall explore the development of energy efficiency credit, green credit asset securitization and green supply chain financing and other service modes under the premise of compliance with laws and regulations and controllable risks, steadily carry out pledge financing businesses such as carbon emission rights, emission rights, water rights and future income rights of contract energy management, and explore green intellectual property pledge loans. Conditional banking institutions should give full play to the advantages of group integrated operation and improve the diversified green financial service system. Financial subsidiaries of banks should develop financial products such as green, low-carbon and sustainable development themes according to their actual business. Trust institutions should optimize the investment of funds and actively develop green trust. Insurance companies should optimize catastrophe insurance, environmental liability insurance and other businesses, actively develop carbon sink price insurance, innovate and develop carbon insurance such as carbon emission trading insurance, and enrich the green insurance product system. Actively use insurance asset management products and other tools to provide customers with integrated green financial products. Banking and insurance institutions should expand green consumption business in an orderly manner and support enterprises and individuals to purchase and consume green low-carbon products.
8. Banking institutions should standardize the development of green bond business, strengthen the management of fund-raising, and actively support green and low-carbon development. Financial leasing companies should give full play to the characteristic function of combining financing with financing, and increase investment in the field of green leasing. Insurance companies should strengthen the use of insurance funds and participate in green project investment by investing in green bonds, green asset-backed securities and insurance asset management products. We should adopt a market-oriented approach to invest in equity projects and equity funds in the field of green development, and actively tilt towards green, low-carbon, circular economy and other fields.
(3) Promoting the low-carbon transformation
of asset portfolio and self-operation 9. Banking and insurance institutions should do a good job in collecting and accumulating carbon emission data. Banking institutions are encouraged to apply mature carbon accounting methods and technologies, explore and carry out carbon emission measurement of enterprises and products in key industries, and find out the carbon emission base of their own operations.Insurance companies are encouraged to carry out portfolio carbon emission measurement. On the premise of protecting information security according to law, we should explore and develop green financial products and services based on carbon accounting information of enterprises and individuals. Explore the introduction of third-party professional institutions, carry out the assessment and verification of carbon emissions of key projects, and improve the standardization and accuracy of green financial environmental benefit data.
10. Banking and insurance institutions should be guided by reducing carbon emission intensity, implement differentiated credit and investment policies with pressure, and steadily increase the proportion of green financial business. We will strictly control access to credit and resolutely curb the blind development of projects with high energy consumption, high emissions and low levels. Banking and insurance institutions are encouraged to explore the evaluation, classification and dynamic management of investment and financing based on carbon performance, gradually optimize the asset structure, and gradually and orderly reduce the carbon intensity of the portfolio.
11. Banking and insurance institutions should establish the concept of green office, enhance information and intensive management capabilities, improve relevant systems and mechanisms, and establish a more efficient and low-carbon service system. Improve the environmental, social and governance performance of their own operations, standardize business practices, implement green operations, green procurement, green travel, so as to save electricity and water, and promote energy-saving and paperless office buildings. Scientifically determine the target and path of carbon emission reduction in operation, and reduce the intensity of carbon emission in daily operation. Encourage qualified banking and insurance institutions to explore and promote the construction of carbon neutral outlets.
(4) Enhancing the ability of
financial risk provention and control 12. Banking and insurance institutions should improve the environmental, social and governance risk management system, and conduct classified management and dynamic assessment of customer risks. Banking institutions should adopt differentiated risk management measures in terms of loan "three checks", loan pricing and economic capital allocation according to the results of risk assessment. Insurance companies should take the results of risk assessment as an important basis for insurance management and investment decision-making, and play the role of differential premium rate adjustment mechanism.
13. Banking and insurance institutions should effectively identify, monitor and control environmental, social and governance risks in business activities, and realize the whole process management of risks. Enhance credit and investment due diligence to fully identify and understand the environmental, social and governance risks and impacts of the project. Explore the gradual incorporation of enterprise environmental assessment, carbon performance, carbon pricing and information disclosure into the management process, strengthen the management of credit granting and investment approval, improve contract management, fund allocation management, strengthen post-loan and post-investment management, and regularly monitor and evaluate the use of funds and environmental benefits of projects. Develop and implement targeted management measures for customers with potentially significant environmental, social and governance risks.
14. Banking and insurance institutions should explore environmental and climate-related risk management methods, technologies and tools, carry out scenario analysis and stress testing step by step on the basis of accumulated data, continuously improve models and parameters, and gradually integrate the analysis and testing results with the comprehensive risk management of banks. We should strengthen the risk identification, assessment and management of high carbon assets, and deal with the risk of transformation steadily. We will strengthen the study of physical risks and explore ways to assess the exposure level of physical risks in key industries and regions. Insurance companies should improve the risk assessment model of green insurance and do a good job in risk analysis of climate change and natural disasters.
15. Banking and insurance institutions should focus on green industries with concentrated customer distribution to carry out normal tracking research, and constantly refine and optimize industry investment and financing policies. Banking institutions should take into account their own capital costs, business sustainability, external supporting policies and other factors, scientifically determine the loan interest rate, and prevent disorderly price competition and capital idle arbitrage. We will implement the policy requirements related to the gradual shift from dual control of energy consumption to dual control of carbon emissions, and do a good job in supervising rectification, credit compression and withdrawal, collection and disposal of backward production enterprises (projects) whose energy consumption (carbon emissions), environmental protection, safety and technology fail to meet the standards and are to be shut down and eliminated in a forward-looking manner.
Banking and insurance institutions should promote the development of green finance from a strategic perspective, improve the organizational structure, improve policies and systems, clarify the direction and key areas of green financial support, scientifically formulate short-term and medium- and long-term development goals and task plans for green finance, and determine relevant responsible departments. Steadily carry out the innovation of green financial system and mechanism, and enhance the ability of green financial services by setting up green financial professional departments, building characteristic branches and setting up full-time posts.
17. Banking and insurance institutions should establish and improve the management system of green financial statistics, implement the requirements of the green financial statistics system, improve the internal data collection, audit, submission and other processes, and further improve the standardization, timeliness and accuracy of green financial statistics. Strengthen data governance, strengthen internal inspection and audit supervision of data quality, and resolutely put an end to underreport and false reporting of green financial data. We will accelerate the digitalization of green finance and actively use big data, blockchain, artificial intelligence and other scientific and technological means to gradually improve the level of green financial management according to our own reality.
18. Banking and insurance institutions should gradually establish and improve information disclosure mechanisms, publicize green financial strategies and policies, fully disclose the development of green finance, environmental, social and governance risk management, etc. Report and disclose the risk exposure of high-carbon assets, carbon accounting of its own operation and holding portfolio according to laws and regulations or regulatory requirements. We will continue to improve the level of information disclosure by drawing on international practices, standards or good practices. Conditional bancassurance institutions are encouraged to study and explore transformation plans.
19. Banking and insurance institutions should reasonably set up green financial business objectives, and establish an effective green financial evaluation system and reward and punishment mechanism. Conditional banking and insurance institutions can explore and implement differentiated, long-term evaluation and medium- and long-term incentive mechanisms according to the actual situation of green industries and projects. We should refine and improve the due diligence exemption mechanism, rationally formulate the due diligence identification standards and exemption situations of each process link, clearly define the operation norms of grass-roots employees, and ensure the implementation of the due diligence exemption system. We will encourage the exploration of innovative green financial support measures in green financial reform and innovation pilot areas and climate investment and financing pilot areas, optimize the allocation of resources, and promote the formation of replicable and replicable typical experiences.
20. Banking and insurance institutions should strengthen the management of green finance and the protection of professionals. Headquarters and provincial, prefectural and municipal branches should designate a senior manager to take the lead in green finance, equip with corresponding resources, give full authorization, and promote related work as a whole. Strengthen the training and introduction of green financial talents, and attract more comprehensive green financial talents with international vision and different disciplinary backgrounds. Every year, green financial training is carried out regularly to improve the professional quality of green financial practitioners.
4. Organizational guarantee
21. Financial management departments at all levels should improve the working mechanism of green finance, do a good job in policy interpretation, strengthen coordination, and promote the implementation of key tasks. Banking and insurance institutions should fully recognize the importance of promoting the high-quality development of green finance and implement it in accordance with the main objectives and key tasks set out in this implementation plan. In the process of comprehensive green and low-carbon transformation of the economy and society, we should take the initiative and increase financial support. We should continue to follow up the progress of the work and report the relevant situation to the regulatory authorities in a timely manner.
22. Financial management departments at all levels should strengthen supervision and guidance, continuously monitor, regularly analyze and summarize the development of green finance within their jurisdiction. We will strengthen off-site supervision, on-site inspection and business guidance for the green finance work of banking and insurance institutions, and promptly correct those banking and insurance institutions with inadequate policy implementation, deviations in the direction of green finance development, weak risk management and data quality problems. Financial management departments at all levels may, according to their work needs, adopt appropriate ways to evaluate the effectiveness of green finance in banking and insurance institutions, and comprehensively use supervision and notification, supervision and rating, and window guidance to strengthen incentives and promotion. Financial management departments at all levels should strengthen the quality management of green financial statistical reports, ensure that the reports are submitted and audited, and effectively avoid such problems as late reporting, misreporting, underreport and omission.
23. Financial management departments at all levels should strengthen coordination with local governments and relevant departments, actively participate in the establishment of work coordination mechanisms or thematic consultation mechanisms, promote the introduction of supporting fiscal and tax support policies or incentive policies for green finance, and promote the sustainable development of green financial business. We will promote the improvement of departmental information sharing mechanisms, guide and support banking and insurance institutions to keep abreast of carbon peak and carbon neutral policy information, green project planning, enterprise environmental information, carbon emission data, and the list of green insurance targets, so as to effectively enhance the pertinence of financial services. We will improve the guarantee and publicity system for carbon emission rights and state-certified voluntary emission reductions. To guide industry self-discipline organizations at all levels to fully integrate high-quality industry resources, strengthen industry self-discipline, build learning and communication platforms, promote investigation and research in key areas, promote exchanges and cooperation inside and outside the industry, and provide support for the green financial work of the whole industry. Banking institutions and insurance companies are encouraged to strengthen interaction and exchanges, and competent banking and insurance institutions are supported to export environmental, social and governance risk management capabilities to their counterparts and customers. Banking institutions are encouraged to strengthen cooperation with professional institutions and academic institutions to jointly explore localized climate scenarios, quantitative analysis models, tools and databases in line with national conditions. Promote cooperation among insurance companies, establish a global green insurance service network, improve service timeliness, breadth and depth, and reduce average service costs.
24. Banking and insurance institutions should organize various forms and media publicity activities to popularize green financial knowledge to employees and the public, disseminate the concept of green development, cultivate green production mode, advocate green low-carbon lifestyle, and s olid the mass base for high-quality development of green finance. We should actively cooperate and exchange with domestic and foreign counterparts, participate in the formulation of green financial development initiatives and standards in the fields of global climate governance and biodiversity conservation, and enhance the voice and influence of green finance. Financial management departments at all levels should improve the green financial policy within their jurisdiction, intensify publicity and training, timely summarize and popularize excellent practice cases and good experience and practices of green finance, promote regional exchanges and mutual learning, and promote the development of green finance to improve quality and efficiency.
