Green Finance

The Bank has vigorously implemented the decisions and arrangements of the CPC Central Committee and acted in strict accordance with the requirements of the regulatory authorities to pursue sustainable development. To this end, it has given strong support to green finance and improved green credit management. It has supported a number of key projects in the green finance area to contribute to environmental protection and green economy. 

To better meet the needs of enterprises for green and low-carbon finance, the Bank has established a green credit product system centering on on-lending, energy conservation and environmental protection loans, transformation and upgrading loans, and other key conventional credit products. The Bank has launched a number of equity investment funds, the China-Japan Energy-saving and Environmental Protection Investment Fund in particular. Moreover, the Bank has engaged in the carbon finance business underpinned by carbon asset consulting services. In 2016, the Bank successfully issued RMB1 billion green bonds, which provided more diversified green bonds for investors. It marked the first green bond ever issued by a policy bank in China. 

Furthermore, the Bank has now built a diversified green financial services system comprising green credit, green funds, and green consulting, giving full play to its leading role as a policy bank in promoting the transformation of economic growth and sustainable development. Meanwhile, it has prepared the White Paper on Green Finance, giving an all-round introduction to its concepts, criteria, practices, and results for supporting green development. 

Specifically, the Bank has actively supported the strategic emerging industries and the sector of green and clean energy. It has worked to facilitate the green transformation of traditional manufacturing and establish an industry system for green and low-carbon cyclic development. Moreover, the Bank has stepped up support for projects in the areas of green agriculture, cyclic utilization of resources, waste disposal, pollution control, renewable energy, clean energy utilization, green transportation, energy-saving and environmental services, industrial energy and water conservation. Furthermore, it has strictly controlled the increase in credit granted to enterprises from steelmaking, shipbuilding, electrolytic aluminium, cement, and glass sectors, all of which are plagued by overcapacity. It has also assisted highly energy-consuming and high-emission enterprises with technological transformation. 

By the end of 2017, the Bank’s loan balance from its green credit business had exceeded RMB100 billion. The benefited projects posted a decrease in standard coal consumption of 17.0203 million tons, and CO2, SO2, and NOX emission reductions of 33.0010 million tons, 111,200 tons and 33,700 tons respectively. The projects also posted a reduction in water consumption of 34.0238 million tons, which brought about good environmental and social benefits.