What’s new: Shanghai will support companies in the green industry to list and trade in domestic and overseas markets as part of its plan to become an international green finance hub over the next few years, an official document (link in Chinese) published Tuesday said.
Included in the list of measures are plans for Shanghai to support innovation in carbon emission allowance-based derivatives, assist companies investing in green industries to move to the city, and encourage financial institutions to develop more financial products that take into account environmental, social and governance factors.
The city aims to establish itself as a globally influential center for carbon trading, pricing and innovation by 2025, the document said.
The background: Green finance has been moving up the agenda for China’s financial regulators and local governments, as the nation has announced its goal to peak carbon emissions by 2030 and achieve carbon neutrality by 2060.
The southern island province of Hainan plans to establish an international carbon trading exchange, and Guangdong province (link in Chinese) plans to set up a unified carbon trading market within the Guangdong-Hong Kong-Macao Greater Bay Area to attract overseas investors.
China has the world’s largest green finance market, with $1.8 trillion in outstanding green loans and $125 billion in outstanding green bonds as of the end of 2020, central bank data show.
Contact reporter Zhang Yukun (yukunzhang@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)
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