Green Finance Empowers Green Development (3) | Actively explore and promote green finance pilots and innovations such as carbon emission trading rights, and form a "win-win" situation for market entities and financial institutions

preface

In order to help enterprises and other market entities make full use of the fiscal, tax, and economic policies of the ecological environment to promote green transformation and development, in May 2023, the Municipal Bureau of Ecology and Environment compiled a total of 37 fiscal, tax, and economic policy measures covering the ecological environment, development and reform, economy and information, finance, taxation, urban management, water affairs, gardening, finance and other departments to support green development, and issued the "Compilation of Several Fiscal, Tax, and Economic Policy Measures to Support Green Development".

For more than half a year, the "Compilation" has been promoted and publicized through various methods such as the training of the Municipal Environmental Protection Committee, joint training with relevant municipal departments, the city's industrial enterprise green development work meeting, bank-enterprise matchmaking meeting, party building alliance, etc., and has carried out key promotion to more than 60 key enterprises, and has achieved steady promotion results in the implementation of relevant financial special fund policies, the expansion of environmental protection tax incentives, and the reform and innovation of green finance, which has played a positive role in empowering the green development of our city.

Today, I would like to introduce to you the effectiveness of the "Compilation" in promoting the reform and innovation of green finance: actively promote green finance pilots and innovations such as carbon emission trading, and form a "win-win" situation for market trading entities and financial institutions.

In 2023, with the strong support of the Hubei Carbon Emission Trading Center, a total of 15 enterprises in the city will register the provincial green industry project application platform "Hubei Green Pass", and 13 projects will be declared and put into storage, including infrastructure green upgrading projects, clean energy industry projects, energy conservation and environmental protection industry projects, cleaner production industry projects and green service industry projects. Through the platform, it provides diversified financing channels and innovative green financial products for various green project entities, and 5 projects have achieved financing, with a total financing of 19.95 billion yuan.

As one of the first batch in the country and the only district in Hubei Province to be selected as a pilot district for climate investment and financing, Wuchang District has actively relied on the resources of provincial and municipal financial service platforms such as "Hubei Green Pass" and "Hanrongtong" to build a comprehensive service platform for climate investment and financing in Wuhan, "Wu Carbon Pass", which will be launched in November 2023, and now has 13 financial institutions and 107 projects in storage, involving a total investment of 67 billion yuan.

At the same time, with the coordinated promotion of the operation and management department of the Hubei branch of the People's Bank of China and the municipal financial department, many banks have carried out green finance innovations such as carbon emission rights pledge. The Wuhan Branch of Minsheng Bank issued a pledge loan of RMB 3 million for carbon emission rights across the performance period, which was the first after the promulgation of the new policy of the "Operational Guidelines for Pledged Loans for Carbon Emission Rights in Hubei Province (Provisional)", and the Wuhan Branch of Industrial and Commercial Bank of China issued the first pledged loan for the right to benefit from green power certificates in the provincial branch, "Green Certificate Loan" More than 300 million yuan, Tianfeng Securities exclusively undertook and successfully issued the first low-carbon transformation-linked corporate bond in China's construction system, Hankou Bank and Wuhan City Card Co., Ltd. piloted the establishment of the country's first open personal carbon account, exchanged the corresponding carbon reduction rewards through micro-banking, and introduced the carbon emission reduction of the personal carbon account into the credit line evaluation index.

The Municipal Bureau of Ecology and Environment has made great efforts to promote the construction of Wuhan's carbon inclusive system. In June 2023, the personal low-carbon life platform "Wu Carbon Jianghu" mini program was launched, relying on the methodology to realize the online accounting function, and quantify personal low-carbon behaviors such as green travel and resource conservation as carbon inclusive emission reductions, which can be used as users' personal carbon assets to redeem gifts such as East Lake cruise tickets, scenic spot tickets, wine, hot dry noodles, etc., to realize value realization. At the same time, the Municipal Bureau of Ecology and Environment spent half a year to create a closed loop of carbon inclusive system incentives of "methodology preparation and publication - emission reduction development and registration - carbon market trading and performance", which realized the realization of carbon assets by incorporating carbon inclusive emission reductions into Hubei pilot carbon market trading varieties, innovated the carbon market offset mechanism, effectively reduced the performance cost of greenhouse gas emitting enterprises, and provided a new channel for small and medium-sized enterprises to participate in carbon emission trading. It is of great significance to enhance the vitality of the pilot carbon market in Hubei.

Through collaborative innovation in the fields of climate investment and financing pilots, green finance such as carbon finance, and carbon inclusion, various types of green equity financing such as environmental resource rights and interests have been continuously deepened, forming a "win-win" situation for market entities and financial institutions.