Chongqing - Chongqing will increase its green credit and strive to reach more than 600 billion yuan (about USD 88.5 billion) in green loans by the end of 2025. 

It aims to double compared to 2020 and maintain an average annual growth rate of more than 20%.

To speed up the construction of Chongqing Green Financial Reform and Innovation Pilot Zones and promote the reform and improvement of Chongqing's green finance, Chongqing has gradually improved the financing environment for green industries.

Integration of green finance and green industry

The concept of green development is the integration of green finance and industry. Chongqing provides investment opportunities for green and low-carbon transformation of major industries.

In recent years, Shanghai Pudong Development Bank (Chongqing Branch) has made full use of the green financial service model. It has formulated specific policies and guarantee mechanisms for the green financing needs of the city's manufacturing industry.

Specifically, including special interest rate incentives, optimization of medium- and long-term loan processing conditions, establishing an exclusive channel for green financial approval, introducing special due diligence exemption measures, etc. Those policies are conducive to the transformation and upgrading of traditional manufacturing.

Green and low-carbon demonstration projects

Also, building a batch of green and low-carbon demonstration projects, Chongqing has launched a pilot financial support project for green transportation. 

This marks an investment and financing service system that has taken shape, promoting the green and low-carbon development of major industries such as the energy and transportation industry.

Bank of China (Chongqing Branch) and Industrial Bank (Chongqing Branch) issued the first carbon-neutral bonds of one billion yuan (about USD 147.36 million) for Chongqing Rail Transit (Group) Co., Ltd, which is expected to reduce carbon dioxide emissions by 1,379,400 tons per year, standard coal by 737,300 tons and sulfur dioxide by 448.24 tons.

Additionally, the Bank of China (Chongqing Branch) has issued four carbon-neutral bonds to relevant enterprises, providing 2.8 billion yuan (about USD 412.64 million) for medium-and, long-term, low-cost financial support.

Chongqing will expand the scale of green bonds to support low-carbon development. By 2025, the scale of green bond issuance will quadruple from 2020 to more than 90 billion yuan (about USD 13.27 billion).

Cross-regional cooperation among green financial institutions

Chongqing will also encourage cross-regional collaboration among green financial institutions.

Chengdu and Chongqing plan to encourage financial institutions in the Chengdu-Chongqing area to break regional boundaries and conduct a series of cooperation in accordance with the national green financial standard system.

By providing the same corporate and private financial settlement services both in Chengdu and Chongqing, cross-border fees will be abolished. This will also promote the integration of green financial service platforms in Chengdu and Chongqing.

(Zhang Zhiying, as an intern, also contributed to this report.)