To accelerate the development of an international green finance hub, Shanghai recently issued the “Implementation Opinions on Speeding Up the Building of an International Green Finance Hub to Serve Carbon Peak and Carbon Neutrality Targets” (hereinafter referred to as the “Implementation Opinions”). In the eyes of many professionals and institutions, the “Implementation Opinions” are full of gold and very implementable.
The “Implementation Opinions” put forward the overall goal that by 2025, Shanghai will basically build an internationally influential carbon trading, pricing, and innovation center, and basically establish its status as an international green finance hub. How should this status be judged? What is the gold content of the 24 measures in the document? A reporter from Shanghai Securities News interviewed relevant experts with these questions.
Multi-dimensional evaluation of the status of an international green finance hub
How to judge the realization of the overall goal, and what are the criteria?
Professor Wu Libo of the School of Economics of Fudan University said that in terms of carbon trading, pricing and innovation center construction, the carbon market covers the scale of emissions, the scale of transactions, the scale of participants, the diversity of trading varieties, the linkage between prices and international and domestic energy prices, and even leads. Carbon prices are a direct and important indicator of the development of renewable energy and the leadership of low-carbon technologies, which reflect the maturity and influence of market development.
“In the financial market, whether the banking, securities, insurance, fund and other industries can form an organic green ecological product system around carbon finance and lead green investment and technological innovation is an important indicator of whether they can assume the status of an international green finance hub. “Wu Libo said.
Shao Yu, chief economist of Orient Securities, said that the status of an international green finance hub can be evaluated by several dimensions, including market participants, abundance of relevant financial products, market trading volume, and market pricing influence.
In order to achieve the above-mentioned overall goals, the “Implementation Opinions” put forward 24 measures in seven aspects, including strengthening the construction of a green financial market system, innovating green financial product business, and improving the green financial organization system. These specific measures are carried out around these evaluation conditions.
The development of carbon finance market attracts attention
Interviewees believe that the 24 measures Shanghai introduced this time have high gold content. Many measures have specific implementation measures, especially for financial business model innovation, system innovation and institutional innovation are very targeted.
Wu Libo believes that there are some measures that have a direct effect on achieving carbon peaks and carbon neutrality as soon as possible, for example, the first to the third part of the “Green Financial Market System Construction”.
These three items are the development of the carbon financial market, supporting the capital market to better serve the green transformation and upgrading of the industry, and promoting the establishment of a financial market environmental, social, and governance (ESG) information disclosure mechanism. Among them, for the development of the carbon financial market, the “Implementation Opinions” proposed to support the construction of the national carbon emission trading market, promote the development of cooperation and linkage between the financial market and the carbon emission trading market, and promote various off-site and carbon emission trading based on carbon emission rights. Innovation of derivatives on the market.
“Several measures for green financial product innovation are also very rich in gold.” Wu Libo said that the national carbon market needs financial ecological support from its inception to the gradual development and expansion. These measures are the scale of the carbon market from the construction of derivatives markets. The development of globalization and the full exploration of the financial attributes of carbon emission permits provide the basis; the capital market’s encouragement of carbon finance and green investment and financing will further promote the tilt of financial services to green industries and low-carbon industries, and solve the problem from the dimensions of product design and information disclosure. Development bottlenecks such as mismatch between supply and demand and insufficient market value discovery.
Shao Yu believes that carbon emission rights are the most important part of green finance. Only by establishing a carbon financial market can the market guide its role fully. Shanghai has a strong financial foundation, and the establishment of a carbon financial market is a prerequisite for Shanghai to establish a green financial hub.
The “Implementation Opinions” proposed to support the capital market to better serve the green transformation and upgrading of the industry, to support the listing or financing of companies that conform to the concept of green development on the domestic and foreign capital markets, and to support the listing and financing of high-tech green industry companies on the Science and Technology Innovation Board. This measure has also received widespread attention from the market, but everyone’s question is, how to ensure that the policy is implemented?
“The green transformation and upgrading of the service industry is indeed the key and difficult point that needs to be broken the most. On the one hand, the transformation of traditional industries faces financing constraints, on the other hand, there are many uncertainties in the transformation process, which increase the difficulty of financial services.” Wu Libo said that the key to obtaining financial support is to have sound evaluation standards, risk management methods and countermeasures. Many projects have technical uncertainties, and risk assessment is very difficult. There are actually many difficulties in providing financial support for green industries, especially for projects of small and medium-sized enterprises. Due to the long return period and large initial investment of green investment projects, there are many risk factors, and there are also some difficulties in credit guarantees.
Shao Yu suggested that the supply of products and services related to green finance can be vigorously developed. For companies that conform to the concept of green development, the listing standards can be appropriately lowered on the basis of standardization; related industry development funds can also be established.
Prevent risks related to innovative business
The “Implementation Opinions” give greater support to innovative green financial products, such as encouraging banking financial institutions to increase the scale and proportion of green credit, strengthening credit service support for green projects, vigorously developing green bonds, and expanding the scale of green bond issuance. However, when the financial business is advancing rapidly, it is necessary to predict and prevent risks. In advancing the business of innovative green financial products, how to do a good job in risk prevention?
Shao Yu suggested that, first of all, adequate information disclosure should be made on green innovative financial products; secondly, the pace of innovation and development of green financial products should be controlled to meet the needs of industrial development and the allocation of regulatory resources; thirdly, to strengthen third-party rating agencies Research on the credit risk of green financial products, establish a reasonable incentive mechanism, and guide rating agencies to rate green financial products objectively and fairly.
Wu Libo believes that a risk management system needs to be established, various direct risks of the green industry must be assessed, and various indirect risks that may arise during the transformation process must also be assessed. “Green transformation has certain policy risks. International, domestic, central and local policies in the field of climate change have a great impact on the investment and financing of green enterprises.” She said that there are also technical risks. The relationship between technology and neutralization technology, and between emission reduction technology and alternative energy technology is complex, complementary and competitive. The adaptability of various technologies has strong regional and temporal and spatial specificity, but its versatility is weak. This is very different from general technological innovation risk management.
Wu Libo said that another type of risk is demand risk, which is the acceptability of the demand side. Resource endowments, infrastructure, cultural traditions, etc. will all affect the acceptance of new technologies and new industries.Return to Sohu to see more
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