Recently, the Beijing Local Financial Supervision and Administration, the Business Administration Department of the People’s Bank of China, China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the Beijing Municipal Commission of Development and Reform, the Beijing Bureau of economy and information technology, the Beijing Municipal Finance Bureau, and the Ministry of Ecology and Environment of the People’s Republic of China jointly issued the “Action plan for the reform and opening up of green finance in the Two Zones” (hereinafter referred to as the “Action Plan”). The Action Plan aims to further promote the reform and opening up of the green finance sector in the Two Districts, and accelerate the construction of a full-service research, decision-making and market-based global green finance and sustainable Financial Center.
The Action Plan closely integrates the development of green finance with the construction of Beijing’s Two Districts, and actively builds a green financial system driven by reform and opening up, featuring innovation and leadership, move towards low-carbon sustainability, and with security as the bottom line. The plan proposes a total of 22 tasks in four areas: First, improve the function of the green financial market. Including promoting the green transformation of financial institutions, improving the credit service capabilities of green projects, supporting green bond financing, promoting the development of green investment, promoting the development of green insurance, enhancing the innovation capacity of green financial products, guiding green enterprises to go public and financing and refinancing, and developing orderly green transactions, promoting the Beijing Green Exchange to upgrade to a national-level green exchange facing the world on the basis of undertaking the functions of a national carbon trading center such as voluntary emission reduction, and strengthening the layout of green financial resources in the city’s sub-centers. Second, it will support the development of green industries and the construction of green cities, promoting financial precision support for industrial upgrading, strengthening financial support for green buildings and green transportation, increasing financial support for agricultural and rural modernization and collaborative ecological governance, actively participating in national climate investment and financing pilot programs, and promoting green lifestyle changes. Third, is to deepen international cooperation in green finance. Including promoting international investment and financing of green industries, building international green think tanks, deeply participating in global green finance governance, and holding high-level green finance forums. Fourth, to improve green financial infrastructure. Including accelerating the construction of a green project library, promoting the empowerment of green service chains by fintech, exploring the establishment of a green financial standard system in line with international standards, and establishing and improving a green financial risk prevention and resolution mechanism.
Beijing is the national financial management center, the forefront of China’s financial reform and opening up, active in international exchanges and cooperation, rich in financial talent resources, possesses strong scientific and technological strength, and advance in of green industry agglomeration, all of which have laid a solid foundation for the development of green finance in Beijing. Beijing’s green finance development is leading in the country. As of the end of June 2022, the green credit balance of major Chinese-funded banks in Beijing was 1.58 trillion yuan, a year-on-year increase of 24.54%, which was 17.98% higher than the growth rate of various loans in the same period; In half a year, non-financial enterprises in Beijing issued green bonds exceeding 100 billion yuan, accounting for nearly 40% of the country’s total issuance, ranking first in the country; as of the end of June 2022, a total of 93.9364 million tons of various carbon emission trading products in the carbon market have been traded. The average transaction price of pilot carbon allowances ranks first in the country. There are 12 listed companies in the national “ecological protection and environmental monitoring industry” registered in Beijing, ranking first in the country.
In September 2020, President Xi Jinping announced at the 75th United Nations General Assembly: China’s carbon emissions will strive to peak before 2030, and strive to achieve carbon neutrality before 2060, fully demonstrating China’s firm determination to pursue a green and low-carbon development path, also put forward a higher demand for financial support for green development. The Party Central Committee, the State Council, various regions and relevant departments have successively issued a series of policies and measures to support green and low-carbon development. The “Opinions on Peak Carbon Neutrality Work” clearly put forward the active development of green finance. In order to implement the decisions and arrangements of the CPC Central Committee and the State Council, give full play to the positive role of finance in supporting the green and low-carbon development of the capital’s economy and promoting the construction of ecological civilization, and accelerate the reform and opening up of the Two Districts construction, Beijing has researched and issued the Action Plan. It will help to effectively improve the level of green financial services, contribute experience to financial assistance to achieve the goal of carbon peaking and carbon neutrality, scientifically address climate change, and provide strong support for accelerating the construction of a world-class harmonious and livable city.
In the next step, Beijing will seize major opportunities of the construction of the Two Districts, serve the construction of the national financial management center, strengthen the linkage of various departments, promote standardized and healthy development of Beijing’s green finance, and strive to build a global green and sustainable finance center that serves green and sustainable finance decision-making and markets development.