Chongqing - In recent years, China and Singapore have deepened their financial cooperation with a focus on green finance, which refers to a loan or investment that promotes environmentally-positive activities. 

China and Singapore publicly announced last November, deepening mutual support in areas ranging from green financing to digitalization and innovation. The Monetary Authority of Singapore said that new initiatives aimed at expanding green finance cooperation and increasing the level of linkage with China include a Green Finance Taskforce, an Exchange Traded Funds (ETF) Product Link, and a Low Carbon Index Family.

Take Southwest China's Chongqing as an example. Last year, Chongqing Three Gorges Bank pledged the local carbon revenue rights and extended a five-year special loan to Wulong District with 50 million yuan (about 7.28 million U.S. dollars), helping the renovation project of Fairy Mountain, the famous national tourist resort in the country. 

Highlighting green finance, Chongqing continued to increase innovation in green financial products and optimize the financial business environment, boosting the economy and expanding the financial industry. 

Carbon sink trading enforces through the market mechanism 

Unlike an ordinary loan, the green finance business conducted by Chongqing Three Gorges Bank is mortgaged by the income rights of carbon sink transactions. 

Carbon sink trading means that developed countries pay for carbon emission indicators from developing countries and invest in afforestation to increase carbon sinks and offset carbon emissions. 

Between regions, the same trading principle is also followed. In short, carbon sink trading is to achieve forest ecological value compensation through the market mechanism. 

Similarly, sewage discharge rights can also be a kind of financial collateral. By providing mortgage financing services to enterprises with emission rights, the Bank of Chongqing promoted energy conservation and emission reduction. 

More importantly, it broadened the financing channels of enterprises and made business operators aware of pollution emission rights, thus enhancing environmental protection. 

Energy-efficient and environmentally friendly green products

Green development requires an optimal balance between protection and development. 

By cultivating new energy sources and other measures, Chongqing promoted the transformation of traditional industries and produced more energy-efficient and environmentally friendly green products. 

Chongqing's automotive industry is a good example. It is estimated that for every 10% decrease in vehicle weight, fuel consumption can be reduced by 6-8%. Thus, replacing steel with plastic has become one of the industry's effective ways to realize the lightweight development of automobiles.

Targeting plastic companies with strong technical strength and bright development prospects, the Chongqing branch of the Industrial and Commercial Bank of China innovated mortgage guarantee methods to support the transformation needs of the traditional manufacturing industry, boosting the city's green development.