BEIJING, April 11 (Xinhua) -- China will further crank up financial support for fostering green and low-carbon development, reported Xinhua Finance citing news from the People's Bank of China (PBOC) on Wednesday.
Seven policymakers released recently a related guiding document which proposes to basically form internationally leading finance-driven green and low carbon development patterns in the following five years.
In general, the document outlines measures of multiple aspects such as ones on optimizing green finance standard system, enhancing information disclosure-based commitment mechanism, and bolstering development of green finance products and markets.
The document also includes measures to advance environmental information disclosure by financial institutions and financing entities and promote construction of carbon emission rights transaction markets, calling on more support from capital market for boosting green and low-carbon development in China.
For instance, eligible enterprises are encouraged to raise funds via listing or refinancing at home or abroad to finance their green and low-carbon projects.
Green bonds and green asset-backed securities (ABS) issuance is also vigorously supported for eligible enterprises and financial institutions. Apart from pledging to actively boost carbon neutrality bonds and sustainability-linked bonds, the document also says to support issuance of clean energy and other eligible infrastructure projects-based real estate investment trusts (REITs). It supports local governments' inclusion of eligible construction projects in sectors including ecological and environmental protection into their baskets of targets financed by proceeds of local government bonds and will scale up financial support for the ecology-oriented development modes.
For green wealth management products (WMPs), the document proposes to research over advancing development of green WMPs in accord with related laws and regulations and under the premise of risk controllability.
The document also urges requirement-meeting operation of green bond and equity investment and financing business, encourages overseas financial institutions to issue green panda bonds or invest in green bonds in China, and backs development of green investment products in securities funds and related investment sectors to propel green and low-carbon development. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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