G-finance Green Development Financial Innovation Financial Cooperation
financial crisis, many countries in the world have come to realize the
necessity for economic restructuring and growth pattern transformation. The
green economy has become an issue of universal interest. Against this backdrop,
the 6th Changchun High-level International Finance Meeting of Northeast Asia
Investment and Trade Expo was successfully held at the Conference Center of
the Songyuan Hotel in Changchun City of Jilin Province. The theme of the
meeting was G-finance — New Drive for Development Model Transformation.
The meeting focused on how to boost green financial innovation, and the
linkage, interaction and fusion between G-finance and existing financial
systems. It was co-sponsored by China Development Bank, Export-Import Bank of
Government. Present at the meeting were executives from Chinese and foreign
financial institutions, economists and leaders of Jilin Provincial People’s
Government, including Ma Delun, Deputy Governor of People’s Bank of
Chairman and President of Export-Import Bank of
Agricultural Development Bank of
Bank of
Board of Supervisors of China Construction Bank, Li Renjie, President of China
Industrial Bank, Zhu Yanfeng, Executive Vice Governor of Jilin Provincial
People’s Government and
Economics. They delivered wonderful speeches and carried out in-depth
discussions on how G-finance can boost economic growth and become a new drive
to advance the transformation of economic growth model.
that
become the most important enabler for
and it is now the right time for
After the international financial crisis broke out, the Chinese government
accelerated its planning on new energy, new material, modern service and other
green industries. In the next decade,
in new energies, spawning an enormous demand. It also further established and
strengthened industrial zones and financial policies that can help develop
green economy, improved the mechanism for sharing environmental protection
information, set up environment exchanges in
to explore multi-layered market trading systems for carbon emission rights and
carbon finance. Therefore, the external conditions for the Chinese banking
industry to vigorously develop G-finance are getting increasingly mature. In
addition,
G-finance in recent years, including accelerating the construction of green
credit, setting up green financial service institutions, establishing
management systems and assessment standards for G-finance and granting loans
to clean energy projects on a trial basis. Consequently, it has accumulated
much experience.
closely related to the development of G-finance and industries featuring the
virtuous cycle in the future. Therefore, the bank should be incorporated into
a G-finance system. It will highlight the requirements of G-finance in
decision-making of its board of directors, credit culture, internal operation
management and corporate social responsibility. During credit restructuring,
the bank will actively engage itself into green economy, circular economy and
low-carbon industries, deny credit support to any outdated projects that don’t
comply with
and strictly enforce the credit access conditions. In addition, it will
actively promote green financial products. Agricultural Bank of
first Chinese bank to issue a debit card with the theme of environmental
protection, advance financial services for clean development, study carbon
trading rules and innovate carbon trading products and services.
Li Lihui, President of Bank of
green financial system is still at the initial stage in
pivot is to establish laws and regulations on low-carbon economy and carbon
emission, formulate low-carbon economy plans and break down the carbon
emission ration to different regions, industries and enterprises. Moreover,
feasible technologies. On top of that, the financial industry should promote
the construction of a green financial system through an innovative mindset.
Specifically, it should enhance policy guidance to G-finance, formulate
environmental protection and environmental risk assessment standards,
encourage banking, insurance, securities, funds and other financial
institutions to deeply involve themselves in green financial business, improve
laws and regulations on G-finance, define assessment indicators and improve
assessment systems through legislation, and intensify the punishment of
malpractice. Financial institutions should speed up innovation, explore and
promote loans, securities, bonds, funds and other green financing products,
establish carbon ration trading, carbon options, futures and other products.
In addition, guests also offer some practical suggestions on how to boost
G-finance. Shao Fujun, Director General of Credit Management Bureau of the
People’s Bank of
and individual information databases, and will promote the construction of a
credit system so as to solve the problem of information asymmetry in G-finance.
Research Center of the State Council, indicated that to address the
opportunities for G-finance,
US-based credit rating institutions, and establish local credit rating
institutions. Zou Dongtao, Director of China Institute for Reform and
Development of
pay for energy conservation so as to build a virtuous cycle and put G-finance
into practice.
In addition, participants also identified problems that should be attended
and solved when implementing G-finance. For instance, financial institutions
orally accept standards of G-finance, but in practice do not change much, or
pursue profit in the name of environmental protection. Moreover, some
enterprises fail to have an adequate drive for G-finance.
Chairman of Center for America-China Partnership, said that green industries
would bring
10 trillion by 2013.
where pollution prevention and control, and emission reduction will bring more
profit and GDP growth. Therefore, financial institutions in
carefully address this trend of economic growth.
At the closing ceremony, Li Ruogu, Chairman and President of Export-Import
Bank of
Consensus on G-finance, which was adopted by the Changchun High-level
International Finance Meeting. The main contents of the consensus are as
follows:
1. G-finance refers to the aggregate of financial factors that can support
the development of green industries and green-oriented reform of
traditional industries, including various financial systems and
arrangements that facilitate green development, institutions, markets,
products, talents and trading activities.
2. G-finance emerges along with green development. The core of green
development is scientific development, sustainable development and
harmony between humans and nature. G-finance can boost and support
green development, and in turn, green development can provide a
direction and market for G-finance.
3. G-finance is a revolution in finance. It represents a new development
trend of international financing industry, which can provide a new
drive to boost global economic growth and present a new opportunity for
financial restructuring.
4. Build a new mechanism in which the market and government work together
to promote green development. Bring into play the role of the financial
market in allocating resources and the government's regulatory role so
as to boost the transition of green agriculture, green manufacturing
and green service from spontaneous action to conscious activity.
5. G-finance is becoming the most dynamic sector in financial industry.
The development of green industries and green-oriented reform of
traditional industries posts an increasing demand for G-finance. The
carbon financing system and trading technology are getting increasingly
mature and trading activities more vigorous. Proactively promote the
formation and development of green financial models and a green
financial industry, and make great effort to boost innovations in green
credit, green bonds, green stocks and green insurance.
6. International cooperation is an important engine for the development of
G-finance. Carry out various forms of international cooperation, and
vigorously promote the formulation of G-finance rules, standard
coordination, product innovation, institutional development, talent
training and green certification.
7. The establishment of a positive incentive mechanism is the key to
boosting G-finance. Accelerate the construction of a legal framework
and regulatory mechanism for G-finance, support the establishment of
positive fiscal and taxation policies, boost innovation in G-finance
and advance the transition to green economy.
8. Set up a global G-finance growth award and appoint a representative and
authoritative accreditation committee and an expert committee to reward
financiers, business leaders and economists that make great
contributions to the growth of global G-finance.
9. On top of wide exchange and consultation, proactively boost the
establishment of an international organization for cooperation on
G-finance.
Li Ruogu also drew an excellent conclusion to the meeting. The Songyuan
Consensus on G-finance is a result of different ideas meeting one another, and
also the fruit of collective wisdom. G-finance emerges as the green economy
develops. The development of green economy calls for the support of G-finance,
which can become a new drive for the transformation of the economic growth
pattern only when it is incorporated into sustainable green economy. Despite
the many difficulties and obstacles, G-finance will still embrace a bright
future. As advocates of G-finance, we are facing heavy tasks and a long road
ahead. Being the executive body of G-finance, we must advance courageously.
In conclusion,
of appreciation as the host, expressing congratulations on the successful
conclusion of the meeting on behalf of CPC Jilin Provincial Committee and
Jilin Provincial People’s Government. Wang also extended sincere thanks to
competent authorities and financial institutions that render much support to
the meeting, also to people that helped make the meeting possible. He also
noted that the Songyuan Consensus on G-finance, the fruit of the meeting, will
make a great contribution to the development of G-finance and financial
innovation, and inject new dynamics for the development of finance in
Province
SOURCE Global Entrepreneur Magazine