Aerial photo taken on May 18, 2020 shows a view of Xihu Park in Fuzhou, southeast China's Fujian Province. (Xinhua/Jiang Kehong)
BEIJING, June 21 (Xinhua) -- The proposal of China's peaking carbon emissions and carbon neutrality targets has brought historic opportunities for the rapid development of green finance and financial technology (fintech), reported Economic Information Daily Monday quoting a report.
The report, focusing on the green finance development in China driven by fintech, was jointly released by the Green Finance Center of Paulson Institute and Beijing Institute of Green Finance and Sustainable Development, recently.
It says that the breadth and depth of the application of fintech in China's green finance field has been expanding, covering green finance regulation, green enterprise recognition, green finance business management and operation of financial institutions, environmental and climate risk analysis, green financial product and service innovation, etc., and it began to be replicated and promoted in more regions in China.
The future green finance business must support green small- and micro-sized businesses, green agriculture, green consumption and green buildings, and it must be carried out on the basis of measuring the carbon footprint of almost all economic activities which needs the support of big data, Internet of Things (IoT), artificial intelligence (AI), blockchain and other fintech tools, said Ma Jun, director of the Green Finance Committee of China Society for Finance and Banking and head of Beijing Institute of Green Finance and Sustainable Development.
"Based on past experience, there is a strong need for financial institutions to quantify corporate carbon emissions when evaluating lending, and enbaling this business through fintech is the cheapest and most efficient way. In addition, the accumulation and analysis of data with the help of fintech will also be very helpful for the development of some carbon products and tools for banks," said Fang Xiaying, deputy general manager with the Green Finance Department of Bank of Huzhou in Huzhou City, a prefecture-level city in east China's Zhejiang Province.
The report suggests that financial institutions can make green fintech development plans and increase resource investment in green fintech, fintech companies can focus on developing blockchain technology to support innovation in green supply chain products and services, and regulators can create regulatory sandboxes to support green fintech.
(Edited by Gu Shanshan with Xinhua Silk Road, gushanshan.1987@163.com)
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