On April 15th, the 2017 annual conference and summit of the Green Finance Committee of China Society of Finance and Banking (hereafter referred to as GFC) has been successfully held in Beijing, which attracted more than 500 representatives from various fields. Topics of the conference include: the development and challenge of China’s green finance, green credit and green bonds, the establishment and innovation of local green finance system; green product innovation and etc.
Ma Jun, Chief economist at the Research Bureau of the People’s Bank of China
Photo Credit: cnfin.com
SynTao Green Finance is one of the pion*eering institutions providing consulting services in green finance and socially responsible investment, and is a founding member of GFC. SynTao Green Finance has been taking an active part in GFC’s research, policy proposal and market education activities. Dr. Ma Jun, Chief Economist at the People’s Bank of China (PBOC)’s Research Bureau and Chairman of GFC, delivered a brief review of the work accomplished by GFC in 2016, where SynTao was continuously mentioned for its contribution to China’s green finance development, including its in-depth participation in the G20 Green Finance work group and its initiative to start China Social Investment Forum (China SIF).
Chen Yulu, Vice President of the People's Bank of China
Photo Credit: cnfin.com
Dr. Chen Yulu, Vice President of the People's Bank of China and consultant of GFC, pointed out in his speech that, China’s green finance had been developing rapidly and making various achievement. Still there are some problems: some local governments and medium-small financial institutions lack of necessary capacity, specialists, methods and instruments for developing green finance. To deal with this dilemma, SynTao Green Finance together with the Climate Bonds Initiative conducted in-depth research, and released the report Study of China’ s Local Government Policy Instruments for Green Bonds. Dr. Guo Peiyuan, Chairman of SynTao Green Finance and a founding member of the GFC, launched the report in the conference.
Chairman of SynTao Green Finance, Dr. Guo Peiyuan
This report analyzes the development of China’s green bond market in 2016 from both national and local level, summarizes a series of policy instruments that local government have applied to encourage green bonds, which include policy signals, supporting facilities, financial incentives and recognitions, presents series of successful and replicable case studies and international experiences as reference for China’s future development in promoting green bonds. Recommendations for local governments in regard to promoting green bonds are as followed:
The central government ministries, commissions and exchanges may take further actions to encourage local governments to support green bonds by adopting relevant policy measures.
Local governments that already made explorative efforts regarding green bonds may release more explicit policy signals and in particular, develop specific agendas on green bonds.
Local governments with greater financial resources may offer financial incentives to bond issuers; while others may focus on policy signals, facilities and recognition and awards.
For many provincial and municipal governments that have yet to incorporate green finance and green bonds into their agenda, more preliminary research and benchmarking is recommended before formulating action plans and promotion of green bonds in light of local conditions.
Regulators, industry associations and academic institutions may also assist in the effort and gain more experience on the policy instruments at the disposal of local governments to promote green bonds.
The media and industry associations may enhance communication and recognize “top green firms” to call upon more local governments to introduce policy measures for the promotion of green bonds.
This report provides valuable information for further supporting the development of green bonds market, which also align with the instruction of central government. Based on this report, SynTao Green Finance developed China’s first green bonds policy instrument database where users can search available green bonds policies according to types and provinces. This database can provide updated and practical cases for the government and the market. SynTao Green Finance will expand the content of this database, such as adding information about green credit, green insurance and green funds etc. China’s green finance policy instrument database will provide more comprehensive information support and policy consulting services. (Please click here to access the database)
Apart from participating in GFC’s research, policy recommendation and market promotion activities, SynTao Green Finance is also a major player in the field of green bonds verification. As an independent verifier, SynTao Green Finance has provided verification services for China’s first green asset backed notes in the interbank market, first corporate green panda bond and many other green bonds in the market. With rich experiences in both research and consulting, SynTao Green Finance will continue its contribution to the development of China’s green finance market.