Yangtze River Delta to build a pilot zone for green financial product innovation

According to the Executive Committee of the Yangtze River Delta Integration Demonstration Zone, the Implementation Plan of Green Finance Dvelopment in the Demonstration Zone of Green and Integrated Ecological Development of the Yangtze River Delta was issued recently.

According to the Plan, the Yangtze River Delta Integration Demonstration Zone will become a pilot zone for green financial product and service innovation, an area for climate investment & finance and carbon finance application, and a test field for the integrated development of green industry and green finance in about three years. The Plan sets nine major tasks, including development of green credit, green & inclusive finance, climate investment & finance and carbon finance, promotion of green investment in the securities market, green insurance development through innovation, establishment of green finance organization system, the mechanism for transformation and upgrading of green financial service industry, the green information sharing mechanism, and strengthening of exchanges and cooperation on green finance.

The Plan is characterized by many highlights. Among them, to enable green investment in the securities market, it supports the issuance of local government bonds, corporate bonds, trans-regional aggregate bonds, non-financial corporate debt financing instruments and other green bonds under the theme of green development, carbon peaking and carbon neutrality, and assists Shanghai Stock Exchange in setting up the capital market service station in the Yangtze River Delta Integration Demonstration Zone to facilitate the listing of green enterprises. To develop green insurance through innovation, the Zone will explore innovative modes for co-insurance, organize insurance companies to establish co-insurance working mechanisms and service schemes, and implement such systems as "offsite real-time compensation". In building a mechanism for the transformation and upgrading of green financial services industry, it will support multi-level capital markets to provide financing to key industries (projects) such as green ecological corridors, green agro-products bases and green eco-cities, and enable the comprehensive improvement of water environment in Dianshan Lake, Yuandang Lake, Fenhu Lake, Taipu River, and other major water bodies. More financial resources will be gathered in green exhibition, zero-carbon procurement platform, green data center and other fields.