On October 19, the Shanghai Municipal Government website issued the “Implementation Opinions on Shanghai’s Accelerating the Building of an International Green Finance Hub and Serving the Peak Carbon Neutrality Target” (hereinafter referred to as the “Implementation Opinions”).
In terms of measures, the “Implementation Opinions” mainly adopted 24 measures in seven areas to help the country achieve carbon peak and carbon neutral goals, including strengthening the green financial market system Build and innovate green financial product business, improve the green financial organization system, strengthen the green financial security system, increase financial support for industrial low-carbon transformation and technological innovation, deepen international cooperation in green finance, and create a good environment for green finance development.
What are the highlights of the “Implementation Opinions”? How should Shanghai develop its carbon finance market? In this process, how can the regulation of green financial products keep up? In response, the reporter interviewed Professor Zhao Xiaoju, Honorary Dean of the Institute of Shanghai International Finance Center, Shanghai University of Finance and Economics, and Shao Yu, Chief Economist of Orient Securities.
What are the highlights of the “Implementation Opinions”? How should Shanghai make efforts?
Zhao Xiaoju believes that the issuance of the “Implementation Opinions” marks Shanghai’s first proposal to build a complete green financial ecosystem in the country. To build a global climate investment and financing center. At the same time, the “Implementation Opinions” fully consider Shanghai’s advantages and favorable conditions, and the measures formulated are practical and feasible.
” When the “Implementation Opinions” determined the construction goals and specific measures of Shanghai’s international green finance hub, it fully considered Shanghai’s The five centers within the country and the national carbon market trading platform are established in Shanghai, with a concentration of domestic and foreign financial institutions, the most complete financial factor market, a high concentration of financial resources, a strong technological and industrial foundation, and a high degree of openness, and other unique advantages and favorable conditions.” Zhao Xiaoju explain.
In addition, Zhao Xiaoju believes that the 24 measures of the “Implementation Opinions” are clearly decomposed and easy to implement. Zhao Xiaoju said that these 24 measures can be divided into four aspects from the perspective of the specific implementation of the measures and the breakdown of tasks: the first category of tasks and measures are undertaken by financial institutions and green financial operating institutions, including banks, securities companies, Insurance companies, fund companies, stock exchanges, national carbon market trading platforms, etc.; the second category of tasks and measures are undertaken by the Shanghai Municipal Government, Shanghai Municipal People’s Congress, Shanghai Financial Bureau, Shanghai Development and Reform Commission, Finance Bureau, and Science and Technology Commission The relevant government departments of various districts, such as commissions, offices and bureaus, and government departments should mainly contribute to the establishment of an international green finance hub in Shanghai.Establish supporting administrative, financial, financial, bidding and other supporting policies; the third category of tasks and measures (such as risk supervision, green financial policy support, evaluation, etc.) The China Securities Regulatory Commission, the National Development and Reform Commission, the Ministry of Ecology and Environment, the Shanghai Headquarters of the Central Bank, the Shanghai Banking and Insurance Regulatory Bureau, the Shanghai Securities Regulatory Bureau and other financial regulatory authorities are strongly supported by the Shanghai Financial Bureau; the fourth category of tasks and measures are various international cooperation , This part of the tasks and measures need to be implemented in cooperation with international institutions.
In addition to the above four aspects, in the development of carbon finance in Shanghai, Shao Yu believes that the creation and improvement of carbon finance-related products, including the spot carbon emission rights , Futures, derivatives, as well as carbon bonds, funds, insurance, etc., a market can only be formed if there are products and transactions. Guide the green transformation and upgrading of the industry, build a corporate green project database and a green development information disclosure mechanism, guide financial resources to tilt toward green enterprises, and increase the supply of carbon emission rights in the market. Strengthen the risk management and control of green finance, plan the development rhythm of the carbon finance market in compliance with regulations, and effectively manage factors such as the quantity and complexity of green finance products, market size, and transaction volume.
Strengthening the supervision of green financial products needs to cover the first, middle, and later processes of the product cycle
Green financial market and green financial products are related to The focus of the industry’s attention. In this process, how to strengthen the supervision of green financial products?
In terms of innovative green financial product business, the “Implementation Opinions” stated that it will optimize green credit services, vigorously develop green bonds, promote investment in green and sustainable development, and support development Green stock indexes, green bond indexes, ESG, carbon price related indexes, and more products such as trading open-end index funds (ETFs) based on green indexes have been launched.
In this process, how does supervision keep up? Shao Yu believes that strengthening the supervision of green financial products needs to cover the first, middle and later processes of the product cycle. Before product creation, it is necessary to formulate complete product creation standards, market transaction rules, and product scale indicators; in product survival and trading, information disclosure rules must be improved; when product violations or risk events occur, a complete handling mechanism must be established .
Zhao Xiaoju added that commercial banks, securities firms, funds, and insurance companies must control risks in accordance with the requirements of the competent regulatory authorities. During the operation of financial institutions, it is necessary to improve the understanding and recognition of risks in the climate investment and financing and green finance industries.