A few days ago, China Development Bank (CDB) issued the Action Plan for Implementing Green and Low-carbon Financial Strategies to Support the Carbon Peaking and Carbon Neutrality Goals (hereinafter referred to as the “Action Plan”) with an aim to conscientiously carry out the major strategic decisions of the CPC Central Committee and the State Council on carbon peaking and carbon neutrality. The Action Plan states a clear timetable, a road map and a working plan for CDB to support peaking carbon and carbon neutrality goals. It is stressed in the Action Plan that CDB should improve its political awareness, think of what is of vital importance to the nation, and base itself on the new development stage. CDB should put into practice the new development philosophy, and promote and become part of the new development paradigm to drive high-quality development. CDB should implement the green and low-carbon financial strategy, and actively give full play to development finance, for the purpose of helping realize the carbon peaking and carbon neutrality goals as scheduled, and supporting the overall green transformation of economic and social development.
The Working Guidance of CPC Central Committee and the State Council for Carbon Dioxide Peaking and Carbon Neutrality in Full and Faithful Implementation of the New Development Philosophy (hereinafter referred to as the “Guidance”) states that the development finance should be encouraged to provide long-term, stable financial support for carbon peaking and carbon neutrality initiatives by the market-oriented and legal compliance principles. In accordance with the key missions mentioned in the Guidance and the Action Plan of the State Council for Carbon Dioxide Peaking Before 2030, the Action Plan of CDB states that by 2025, the proportion of green loans in credit assets will increase by more than 5% compared with that by the end of 2020, and by 2030, the figure shall reach around 30%. Both the investment & financing of the CDB group and its business operations will achieve the carbon peaking goals before 2030 and the carbon neutrality goals by 2060. Moreover, CDB will integrate the green and low-carbon development philosophy into the whole process of corporate governance, corporate culture, business development and management, so as to continuously provide high-quality and efficient financial services for the green and low-carbon circular development.
The Action Plan specifies that CDB will continue to enhance its support to key fields such as establishment of a clean, safe, efficient and low-carbon energy system, energy conservation, carbon emission mitigation and efficiency improvement in key industries, building of low-carbon transportation system, green and low-carbon development in urban and rural areas, green and low-carbon technology innovation, and improvement of carbon sink capacity, among other carbon peaking and carbon neutrality missions. It will mainly facilitate the “ten major carbon peaking actions”, further explicit the action plans to coordinate with the in-depth industrial structure adjustment and the comprehensive, green transformation of social and economic development.
It is proposed in the Action Plan that CDB will establish ten action systems for promoting the carbon peaking and carbon neutrality goals, including the action plan, organization and implementation, credit policy, carbon accounting, innovative products, risk management and control, appraisal and evaluation, talent team building, external cooperation, and green operation, in order to constantly improve the quality and effectiveness of development finance. In the future, CDB will set up a “1+N+X+Y” policy system for carbon peaking and carbon neutrality. It will establish a special credit system for green and low-carbon development, create a credit carbon accounting system, innovate green financial products, and manage the climate risks effectively. It will also strengthen the building, assessment, stimulus and regulation of the talent team, deepen external and international cooperation, make proper information disclosure and advance its own carbon peaking and carbon neutrality tasks, establish and improve the long-term mechanism of development finance for supporting carbon peaking and carbon neutrality.
With “green” as one of its core values in its development, CDB takes the implementation of green and low-carbon financial strategies as an important part of its development strategies and its business development planning in the 14th Five-Year Plan period. It will improve the working mechanism, team up a leading group for the green and low-carbon circular development, specify objectives, insist on innovation-driven principle, and continuously intensify its efforts to advance the strategies. At the end of November 2021, the balance of CDB’s green loans reached 2.4 trillion yuan, ranking the first in the domestic banking industry. The loans lent strong support to the development in key fields of green and low-carbon circular economy such as the clean energy industry, green urban and rural construction, development of green transportation, energy-efficient and environment-friendly transformation in the industrial field, the integrated conservation and restoration of mountains, rivers, forests, lakes, grasslands and deserts, the construction of environmental infrastructure and pollution prevention, and building of forestry and grassland.
Next, CDB will continue to thoroughly implement the decisions and instructions of the CPC Central Committee and the State Council on carbon peaking and carbon neutrality, and further play the unique role of development finance in key fields and weak areas, continuously driving the green and low-carbon financing for new achievements.
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