2022 Annual Meeting of the Green Finance Committee (GFC) of the China Society for Finance and Banking (hereinafter referred to as the GFC Annual Meeting) was held online on November 13, 2022. It is the eighth annual meeting held by GFC since its establishment in 2015. A total of 27 achievements were released at the meeting, which is a fine testament to GFC’s fruitful outcomes in 2022. Leaders from the People’s Bank of China (PBC) and major financial institutions, as well as experts from nearly 70 institutions, delivered speeches at the meeting and engaged in lively discussion about transition finance, environmental information disclosure, green finance product innovation, etc.

Guest speeches

Xuan Changneng, Deputy Governor of PBC, Gu Shu, Party Secretary and Chairman of Agricultural Bank of China (ABC), and Lyu Jiajin, Party Secretary and Chairman of Industrial Bank, delivered a speech at the opening ceremony respectively. Ma Jun, Chairman of GFC, China Society for Finance and Banking, chaired the meeting.

Xuan Changneng congratulated GFC, China Society for Finance and Banking on its achievements, and summarized the experiences of PBC in developing green finance.

• First, a unified and sound standard system is a prerequisite for the market’s regulated development, so it is important to focus on the establishment of green finance standards and research on transition finance standards.

• Second, efforts should be made to improve green finance policies and market systems. It’s essential to fully leverage the fundamental role of the market in resource allocation, while emphasizing policy incentives and constraints.

• Third, it is necessary to stay open-minded and play an active part in climate change and environmental governance as well as international cooperation in green finance.

Besides, he pointed out four key areas where more efforts can be made to fuel green finance.

• First, improving green finance standards and enhancing competence in carbon accounting and environmental information disclosure.

• Second, making the best of financial policies to support green transition.

• Third, guarding against financial risks concerning climate and environment.

• Lastly, engaging in international cooperation and governance in green finance.

The state-owned bank ABC, with the mission of meeting the needs of agriculture, rural areas and farmers, has blazed a new path of green finance to empower rural revitalization. Gu Shu mentioned that financial institutions need to focus on four key areas. Firstly, improving the governance of green finance. Financial institutions need to adhere to the green development philosophy throughout their strategies, systems and operations. Secondly, sharpening focus on key areas of green development. ABC will keep enriching its services regarding green development, with its focus on biodiversity and the low-carbon transition of high-carbon industries. Thirdly, innovating green finance products and services. ABC will continue to lead innovation, eliminate barriers to diversified financing, and cultivate a superior green finance brand. Fourthly, enhancing exchange and cooperation in green finance. ABC, as one of global systemically important banks (G-SIBs), actively aligns with international mainstream standards. As the only Chinese institution joining the Global Investors for Sustainable Development (GISD) Alliance, it has signed the Green Investment Principles (GIP) and the Principles for Responsible Banking (PRB), and become a supporting institution of the Task Force on Climate-related Financial Disclosures (TCFD).

Lyu Jiajin said that in recent years, Industrial Bank has not only held a significant position in the domestic green finance market, but also stepped up to the global stage.

• Firstly, Industrial Bank strives to double its green finance financing balance during the 14th Five-Year Plan period, so as to make green finance the main link connecting economies and the main driving force for optimising business structure.

• Secondly, Industrial Bank upholds reform and innovation to gather momentum for development. It continues to unleash the effects of green finance system reforms and has established the Industrial Bank Carbon Finance Research Institute. In addition, it has launched targeted financial products for achieving the Dual Carbon Targets, with focus on low-carbon industrial structure, energy structure decarbonisation, and the commercialization of low-carbon technologies.

• Thirdly, Industrial Bank promotes inclusive sharing of the benefits of green finance for common prosperity. It is accelerating its efforts to apply green finance innovation to carbon trading markets and eco-product trading markets. It is actively exploring more mechanisms for eco-product value realization and promoting the deep integration of green finance and inclusive finance by utilising digital technology, in a bid to achieve common prosperity and rural revitalization.

• Fourthly, it adheres to a systematic thinking to prevent transition risks.

Achievements

At the annual meeting, Ma Jun presented the “Report on the Work of the Green Finance Committee of the China Society for Finance and Banking during 2021-2022 and Outlook for the work during 2022-2023”, in which he introduced the 11 achievements of the five newly established working groups (research groups) and members of GFC over the past year. These achievements covered topics such as transition finance, environmental information disclosure, product innovation, international experience research, financial support for biodiversity and international cooperation. Ma Jun pointed out that next year, GFC will, under the leadership of PBC and China Society for Finance and Banking, continue to mobilize industry forces to formulate transition finance standards and launch related products, enhance information disclosure of the environment and climate change among financial institutions, support the innovation of green finance products that serve the Dual Carbon Targets, strengthen the promotion of green finance achievements and green development philosophy, promote the application of the Common Ground Taxonomy (CGT) in various scenarios, enhance the influence of the Green Investment Principles (GIP) and other international cooperative mechanisms, and conduct research on “financial support for biodiversity conservation”.

Representatives from 18 organizations, including GFC working groups (research groups) and members of GFC, released 27 achievements in total. Wang Wen, Secretary-General of GFC and Executive Dean of Chongyang Institute for Financial Studies at Renmin University of China (RUC), chaired the announcement session of these achievements, which are listed as follows.

1. Yin Hong, leader of the GFC working group of environmental information disclosure and Deputy Director of the Modern Finance Research Institute, Industrial and Commercial Bank of China (ICBC), released the Research on Environmental Information Disclosure Research and Research on ESG Evaluation and Application – A Case Study of ICBC Huzhou Branch.

2. Li Hongbin, leader of the GFC working group of transition finance and Deputy General Manager of the Credit Management Department of China Construction Bank (CCB), along with Wang Yong, General Manager of the Risk Management Department of CCB, and Yang Xuemei, Senior Deputy Manager of the Investment Banking Department of CCB, released the Research on Transition Finance, Building an ESG Evaluation System at CCB, and Green Paper of China’s Green Capital Market (2022) (Project Overview).

3. Liu Shiwei, leader of the GFC research group of international experience and Chief Risk Officer of the Credit Management Department of Bank of China (BOC), released the Research on International Experience in Green Finance.

4. Chen Yaqin, leader of the GFC research group of product innovation and Assistant General Manager of the Green Finance Department of Industrial Bank, released the Case Studies on Green Finance Innovation.

5. Bai Yunwen, leader of the GFC research group of financial support for biodiversity protection and Vice President of the Institute of Finance and Sustainability (IFS), released the Research on Financial Support for Biodiversity Conservation.

6. Lu Weifeng, Deputy Governor of PBC Hangzhou Central Subbranch, launched the information management system for green finance in the Yangtze River Delta and released the Guidance on the Application of ESG Evaluation and Credit Process Management for Corporate Financing Entities of Banking Financial Institutions.

7. Liu Yiwen, Director of the Financial Work Office of the People’s Government of Huzhou City, Zhejiang Province, and Zhang Yibing, Governor of the PBC Huzhou Central Subbranch, launched an application named “Huzhou Green Finance” and a system for environmental information disclosure among financial institutions.

8. Li You, Deputy Director of the PBC Chongqing Business Management Department, launched a platform named “Changjiang Lvrongtong”, namely the digital green finance infrastructure in Chongqing.

9. He Qidong, Governor of the PBC Quzhou Central Subbranch, released Quzhou’s Framework of Transition Finance Based on Carbon Accounting.

10. Zeng Xuewen, General Manager of Strategic Planning Department and Deputy Director of Green Finance Research Institute, ABC, released the Research on Transition Finance Strategies of Shandong Province.

11. Yu Xiaolan, Governor of the PBC Taizhou Central Subbranch, launched the digital platform Taizhou “Weilvda” featuring the integrated application of inclusive finance and green finance.

12. Li Zhenhua, Director of the Ant Group Research, released the Group Standards of Green Evaluation for Small and Micro Enterprises, Research and Recommendations on Blockchain Technology Supporting Green Finance Development, and Application and Development of Artificial Intelligence in ESG Investment and Financing.

13. Sun Rui, Senior Advisor and Executive Director of the Paulson Institutes Green Finance Centre, presented the Fintech Facilitates the Sustainable Development of Green Finance in China: Case Studies and Outlook (2022) report.

14. Xiao Li, General Manager of the Institutional Clients Business Department of PICC Property and Casualty Company Limited (PICC P&C), released the PICC Green Energy Guarantee Scheme.

15. Wang Wen, Secretary-General of GFC and Executive Dean of Chongyang Institute for Financial Studies, RUC, along with Lan Hong, Deputy Director, professor and supervisor for doctoral students of the Centre for Eco-Financial Studies, RUC, released the Transition Finance: Concepts Innovation and Practices Outlook and Research Report on Green Finance Development 2022.

16. Wang Yao, Deputy Secretary-General of GFC and Dean of the International Institute of Green Finance, Central University of Finance and Economics (IIGF, CUFE), released the ESG Risk Identification Methodology for Mutual Funds and CUFE-CCB ESG Fund Evaluation Report.

17. An Guojun, Deputy Secretary-General of GFC and Associate Researcher of the Institute of Finance and Banking, Chinese Academy of Social Sciences, released the Research on Pathways of Green Funds Supporting the Dual Carbon Targets and the report on Philanthropy Finance, ESG, and Social Responsibility.

18. Kan Weilan, Chief Economist of United Nations Development Programme (UNDP) China Office and Head of the Research and Policy Centre, initiated the research project of Technical.

Parallel Forums

Eight parallel forums were held in the afternoon. Experts discussed and exchanged view on a number of topics, including reform and innovation in local green finance, environmental and climate information disclosure, international cooperation in green finance and the BRI, transition finance, carbon markets and carbon finance, financial support for biodiversity conservation, international green finance practices, and green finance product innovation. Nearly 50 experts spoke at the meeting. They were from institutions such as the PBC Research Bureau, PBC Financial Research Institute, PBC Xiamen Central Subbranch, PBC Chengdu Subbranch, PBC Huzhou Central Subbranch, Green Finance Committee of the Guangdong Society for Finance and Banking, People’s Government of Huzhou City, Zhejiang Province, Administrative Committee of Lanzhou New Area, Gansu Province, Agricultural Development Bank of China, Bank of China (BOC),, Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), Postal Savings Bank of China (PSBC), Industrial Bank, Bank of Huzhou, Mybank, PICC P&C, Bond Research Centre of China Central Depository & Clearing Co., Ltd. (CCDC), State Power Investment Corporation (SPIC), China International Engineering Consulting Corporation (CIECC), Energy Economics Institute of CNOOC, China Baowu Steel Group Corporation, China Beijing Green Exchange, Institute of Finance and Sustainability (IFS), Chongyang Institute for Financial Studies at RUC (RDCY), the IIGF of CUFE, China Metallurgical Industry Planning and Research Institute (MPI), National Centre for Climate Change Strategy and International Cooperation (NCSC), Branch of Resources and Environment, China National Institute of Standardization (NIS), Research Institute of Forestry Policy and Information, Chinese Academy of Forestry (CAF), Institute of Climate Change and Sustainable Development (ICCSD), Tsinghua University, BRI Green Development Institute, World Economic Forum (WEF), International Finance Corporation (IFC) of the World Bank Group, Hongkong and Shanghai Banking Corporation (HSBC), S&P Global Greater China, Morgan Stanley Huaxin Funds, CFA Institute, Carbon Market Working Group of European Chamber, China Chamber of Commerce to the EU, Paulson Institute, and Virtues Group.

The annual meeting was jointly organized by GFC, China Society for Finance and Banking, IFS, RDCY, the IIGF of CUFE, and the Modern Finance Research Institute, ICBC, and supported by ABC, PICC P&C, Industrial Bank, the Green Investment Principles, Green Finance Leadership Program, Paulson Institute, CFA Institute, Beijing Green Finance Association (BGFA), Green Development Centre of Investment Association of China (IAC), National School of Development (NSD), Peking University, German Agency for International Cooperation (Deutsche Gesellschaft fr Internationale Zusammenarbeit, GIZ), National Financial Technology Certification Centre (Beijing), China Environmental United Certification Centre (CEC), China Beijing Green Exchange, and Beijing Transfintech Co., Ltd.

GFC has been promoting green finance concepts, studying related policies, and driving product innovation since its establishment in 2015. It releases dozens of research achievements, and organizes numerous seminars and exchange activities every year, becoming a crucial platform for promoting international cooperation in green finance.