On April 10th, the People's Bank of China, along with six other departments including the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Ecology and Environment, the Financial Regulatory Administration, and the China Securities Regulatory Commission, jointly issued a significant document titled "Guiding
From XINHUA
On April 10th, the People's Bank of China, along with six other departments including the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Ecology and Environment, the Financial Regulatory Administration, and the China Securities Regulatory Commission, jointly issued a significant document titled "Guiding Opinions on Further Strengthening Financial Support for Green and Low-Carbon Development" (hereinafter referred to as the "Opinions").
The "Opinions" consist of eight sections and 24 articles. Centered around enhancing financial support for green and low-carbon development, the main goal of the "Guiding Opinions" is to essentially establish an internationally leading financial support system for green and low-carbon development within the next five years; by 2035, a range of economic and financial green and low-carbon policies will be synergistically and efficiently advanced, with the standard and policy support systems for financial support of green and low-carbon development becoming more mature, allowing for better utilization of resource allocation, risk management, and market pricing functions.
Notably, the "Opinions" set clear requirements for optimizing the green finance standard system and strengthening information disclosure.
A representative from the People's Bank of China introduced that the "Opinions" propose the gradual implementation of carbon accounting within the financial system, the establishment of sound carbon accounting methods and databases for financial institutions, and the formulation of unified carbon accounting standards for financial institutions and financial operations. It encourages financial institutions and enterprises to use big data, financial technology, and other technological means to provide technical support for carbon accounting work. In terms of standards, it calls for the development of a unified green finance standard system and accelerates the research and formulation of transition finance standards.
Regarding information disclosure, the "Opinions" demand the promotion of environmental information disclosure by financial institutions and financing entities, exploring the establishment of an environmental information disclosure system covering different types of financial institutions in a phased and categorized manner, and improving the guidelines for sustainable development information disclosure by listed companies, as well as perfecting the carbon emission information disclosure framework. It aims to continuously improve the quality of environmental information disclosure and assessment, and promote cross-departmental, multi-dimensional, and high-value green data integration.
The "Opinions" also provide clear directions for the development of green finance products and markets. In the context of the carbon emission rights trading market, the "Opinions" express the intention to 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. At the same time, addressing the transition finance that has garnered attention in recent years, it proposes to encourage financial institutions to use green finance or transition finance standards to increase credit support for green development and low-carbon transformation in sectors such as energy, industry, transportation, and construction, under the premise of legality, compliance, risk control, and commercial sustainability. Additionally, products and services in the capital market and green insurance are also highlighted as key areas for future development.
In response to the potential risks posed by climate change, the "Opinions" suggest the need to "strengthen prudential management" and "enhance the ability of financial institutions to cope with risks." Furthermore, financial institutions themselves should incorporate climate change-related risks into their risk control systems and corporate governance frameworks.