Chongqing- Chongqing is the first municipality in China applying for the construction of the Pilot Zone for Green Finance Reform and Innovation, which determines its multidimensional application and coverage of major industries, said Yang Zaiping, Founding Secretary General of Asian Financial Cooperation Association.

Build a western financial center

With a strategic focus on building a western financial center and an international consumer center city, Chongqing is accelerating the development of a global, green, intelligent, and humanistic cosmopolitan city in accordance with the overall layout of the Chengdu-Chongqing economic circle.

"I don't agree that many regions are trying to build themselves as so-called financial centers," said Yang. "Combining with Chongqing's geographic location and booming development, I think it is gathering momentum, where many of the city's practices and experiences have been already moving into this direction."

Chongqing has seized the opportunity to construct and develop the Chengdu-Chongqing economic circle to actively incorporate green finance into the Plan for the Construction of a Western Financial Center in the Chengdu-Chongqing economic circle. 

Additionally, Chongqing has made green finance a key task in the city's ecological civilization system reform, the Yangtze River Economic Belt development, and other major reform events for four consecutive years.

Yang added that upgrading the local industry has already had some effects on the whole country and even on Southeast Asia. For example, the motorbikes made in Chongqing are already internationally renowned, especially in Southeast Asia.

Green finance promotes carbon reduction

"I've been to Singapore several times, and I think Singapore is leading the way in the development of smart cities, green cities, and green industries," said Yang. "Chongqing can learn their experience in these aspects through cooperation with Singapore."

Yang said that green finance could precisely promote carbon reduction to reach the ideal target. If Chongqing plans to boost its green finance, it will face many complex economic, financial, and even technical issues.

Increase green finance business

Yang said green finance needs more market vitality. It is necessary to maximize green financial business and assets. The first step is to increase the scale of green credit, insurance, and bonds.

Secondly, green capital is important in green assets. Green development and carbon emission reduction require long-term capital support, especially in clean energy, energy conservation, and environmental protection.

In addition, the transformation of many scientific and technological achievements into industrial business products requires the strong support of long-term capital and venture capital, such as advanced carbon emission technology.

Reduce financial support for some industries

"At the same time, we also need to reduce financial support," said Yang. "In particular, reducing financial support for high-energy, high-polluting industries, both in incremental and stock capital."

He thinks, in addition to compressing the incremental capital for some industries, the stock ones that contain serious risks and problems should be reduced.

The two-day China-Singapore (Chongqing) Connectivity Initiative Financial Summit 2021 (CCI-FS) focuses on opportunities to deepen financial collaboration between Singapore and Chongqing and between ASEAN and western China that was concluded on November 24.

(Shi Jiaqi and Zhang Yue, as interns, also contributed to this report.)