The Zhongguancun Forum recently hosted a unique conference focused on “carbon neutrality.” Following China’s announcement of its “dual carbon” goals in 2020, the Central Financial Work Conference in 2023 elevated the importance of green finance within the framework of five significant financial tasks.
What role does green finance play in unlocking the potential of new productive forces? This question was at the center of the forum themed “Green Technology Going Global: Financial Empowerment at the New Frontier of Internationalization of New Productive Forces.” Institutions from various sectors, including digital financial services, venture capital, and government investment funds, shared their latest practices in green finance. They engaged in discussions on how green finance can empower the international development of new productive forces, contributing wisdom and strength to global green development.
Providing Financial Support for Global Green Technology Cooperation
Since the introduction of the “dual carbon” targets in 2020, the 2023 Central Financial Work Conference has underscored the importance of enhancing green finance. Concurrently, the global acceleration of green transformation presents both new opportunities and challenges for green finance.
Chen Liang, Chairman of China International Capital Corporation (CICC), highlighted at the forum that China’s green investment is primarily focused domestically, while international investment activities related to green technology are still in their early stages. There is significant room for improvement in overseas investors’ participation in green investments. In this context, there is a need to strengthen financial support for green technology going abroad and to attract international green capital. Issuing green bonds in international capital markets could attract investment to support the sustainable development of domestic green technologies. Additionally, fostering surrounding cooperation in the third-party market can provide financial backing for global green technology partnerships.
Mike Freer, the UK Deputy Trade Commissioner to China, emphasized that the UK and China should deepen their collaboration in green finance and energy transition, fostering synergistic innovation and activating private sector vitality through public investment to jointly lead the decarbonization process of the global energy system.
Shabino, a senior advisor at the EU Delegation to China, pointed out that as major global economies, China and the EU should continue working with other international partners to build a fair and trustworthy system in clean energy technology, green finance markets, and international standards. They should leverage multilateral platforms to enhance the credibility and comparability of global climate financing, creating green investment demonstrations that turn climate challenges into historical opportunities for innovation, fairness, and prosperity.
Peng Wensheng, Chief Economist at CICC, stated that the success of China’s green industry stems from three main factors: economies of scale in manufacturing that reduce costs, market competition that drives efficiency improvements, and effective public policies that address externality issues. In light of new geopolitical economic circumstances, China needs to align supply-side support and regulatory policy adjustments while strengthening external cooperation to leverage its manufacturing advantages in addressing global green industry chain pressures. This approach will help maintain dynamic economies of scale and technological innovation vitality, providing sustainable momentum for achieving carbon neutrality.
Green Finance Practices as Vital Sources for the Green Industry
“We are pleased to share that the greenhouse gas emissions generated by today’s ‘Dual Carbon Strategy and Green Finance’ forum will be offset by the carbon sink generated from CICC’s ecological carbon-neutral forest ‘Seda Project,’ which is implemented in Seda County, Ganzi Prefecture, Sichuan Province,” Chen Liang stated. This offset ensures that the forum is a true “carbon-neutral” event, exemplifying how finance can assist in the global green transition and the realization of China’s “dual carbon” goals.
Yang Chao, Chairman of the China Green Carbon Foundation, noted that financial institutions have made beneficial explorations in supporting high-quality forestry development and enhancing forestry carbon sink capabilities. They have introduced various financial products such as carbon sink collateral loans, carbon sink bonds, and carbon sink insurance. Innovative tools like carbon sink futures, carbon sink options, and forward repurchase agreements have also been proposed and have shown positive outcomes, injecting new vitality into enhancing forestry carbon sink capabilities.
Li Xin, General Manager of the Compliance Department at Ant Group, mentioned that the group has leveraged relevant products to ensure that financial resources are directed toward green products and consumption, addressing past challenges in the green consumption sector. By combining online assessments with a verification system for green merchants, they have successfully allocated consumer credit funds to designated trading venues.
Li Xin stated, “Green products usually carry a premium compared to similar consumer goods. Convincing consumers to purchase them is a matter of consumer awareness and willingness. The aforementioned products have intense interactions with consumers. We promote awareness and willingness to buy green products through online initiatives, such as offering interest-free installment coupons or repayment subsidies. The ultimate goal of green consumption finance is to enhance consumers’ enthusiasm for green consumption through refined services, ultimately increasing recognition and preference for green products across production, circulation, and selling stages, thereby driving the upgrade of green technology industries and reducing green premiums.”
As a leading brokerage firm, CICC’s Investment Banking Department also presented its comprehensive product service plan for “specialized, refined, distinctive, and innovative” firms at this forum. The plan indicates that CICC has developed a three-tiered gradient service system based on traditional investment banking services, addressing core pain points in enterprise development and meeting the diverse needs of businesses at various stages and service depths.
According to data disclosed by the central bank, as of the end of the fourth quarter of 2024, the amount of domestic and foreign currency green loans in China reached 36.6 trillion yuan, marking a year-on-year increase of 21.7%, which is 14.5 percentage points higher than the growth rate of all loans. In 2024, an additional 6.52 trillion yuan was added. Loans directed toward projects with direct and indirect carbon reduction benefits amounted to 12.25 trillion yuan and 12.44 trillion yuan, respectively, accounting for 67.5% of total green loans.
