Chongqing- The Green Finance Helps the Green Recovery of the Global Economy Forum, one of the major events of China-Singapore (Chongqing) Connectivity Initiative Financial Summit 2021 (CCI-FS), was held in Chongqing on November 24.

Tens of Chinese and foreign senior executives from financial institutions, experts, and scholars delivered keynote speeches about green finance development and cooperation, and had high-level discussions on the issue of opportunities and challenges for Chongqing to develop green finance and cooperate in this field.

Sustainable development has already become a consensus. Considering this, green finance is necessary for maintaining sustainable development economically and environmentally, which serves as the goal for China's future financial development.

Green loans ranking first worldwide

Ma Jun, Co-Chair of G20 Sustainable Finance Working Group and Chairman of Green Finance Committee of China Society for Finance and Banking, noted that China has been establishing a policy framework of green finance and its corresponding system since 2016.

As of now, the country's green financial system has already reached 15 trillion yuan (about 2.3 trillion U.S. dollars) of green loans, ranking first in the world. 

Over the past five years, China issued 1.6 trillion yuan worth of green bonds, ranking as the world's second-largest. Meanwhile, China is developing innovative financial products, including green asset-backed securities (ABSs), green exchange-traded funds (ETFs), and carbon derivatives.

"In 2016, China initiated the G20 Green Finance Study Group, proposing to discuss and promote green finance with the world," said Ma. "In the same year, a global consensus was also reached within G20." 

Ma said the Study Group became the G20 Sustainable Finance Working Group in 2021, with him serving as the Co-Chair on behalf of China.

"Green insurance, as a pillar of green finance, can be used for risk mitigation, reimbursement, investment promotion, and transformation guarantee," said Thomas Haller, Head of South Asia and East Asia, Public Sector Solutions, Swiss Re Group. "The company aims to make the world more resilient to the new environment."

He believes that China will share tremendous opportunities of mutually beneficial cooperation in green financing with the world, drawing experience from each other. The international capital market craves to invest in China's green industries, while China, as a major leader in international technological development, plays a vital part in addressing environmental changes. 

"Especially Chongqing, a megacity, has also been affected by climate change," said Thomas Haller. "Therefore, it holds advantages in building a regional center for green finance, and so far its proactivity in this field is much appreciated."

Other topics involve opportunities and challenges in green financial cooperation and how green finance will empower Jiangbeizui to support the construction of the western financial center.