Chongqing- The Overall Plan for the Construction of the Chongqing Green Finance Reform and Innovation Pilot Zone was recently issued by the People's Bank of China, the National Development and Reform Commission, and other six ministries and commissions, with the approval of the State Council of the People's Republic of China.
Green finance is a new format in the financial sector, emphasizing the green feature in addition to its general financial attribute. It provides financial support for environmental improvement, climate change, and resource-efficient economic development.
Slope greening of Songlinpo parking lot in Shapingba District, Chongqing. (iChongqing file photo)
Under the plan, Chongqing plays a significant role in promoting the green development of the Yangtze River Economic Belt and accelerating the green transformation and industries' upgrading.
Issue of green bonds had a year-on-year increase of 106.7%
Why was Chongqing approved to build a green finance reform and innovation pilot zone? Li Jing, vice president of Chongqing Technology and Business University, believes that the reason is inseparable from Chongqing's status and advantages in ecology and industry.
Statistics of Chongqing green finance. (Photo/ Chen Zhan)
Chongqing is a significant ecological barrier in the upper Yangtze River with abundant ecological resources and critical ecological status. The green element is necessary for Chongqing, a prominent industrial base in China that represents advanced manufacturing.
In 2021, Chongqing issued 12.4 billion yuan of green bonds through the interbank market, an increase of 106.7% over the previous year. In the first batch of 13 carbon emission reduction loans, 960 million yuan was provided, resulting in a reduction of 213,000 tons of carbon dioxide equivalent per year. The initiatives laid the groundwork for Chongqing's green finance reform and innovation pilot zone.
The new material industry benefits most from green finance
With the continuous advancements of the "dual carbon" goals, green finance has become an integral part of society.
The Overall Plan identifies the sectors that will benefit most from green finance, including green energy, green buildings, green transportation, green manufacturing, agriculture, and forestry.
Information about Chongqing Green Finance Reform and Innovation Pilot Zone. (iChongqing/ Chen Zhan)
New material industries are particularly benefited. For instance, through the mortgage of pollution discharge rights, Chongqing Polycomp International Corporation was able to obtain a loan of 100 million yuan from the Bank of Chongqing as the first national green factory in the glass fiber sector assessed by the Ministry of Industry and Information Technology.
Another example is Chongqing's first zero-carbon building in Beibei District, which was recently put into use. Using advanced technologies and materials, including thermally dimmable glass, aerogel heat insulation, and zero-carbon integrated wall, the cabin can save 47.15% on its energy use.