Shanghai Securities News China Securities Network News (Reporter Zhang Yanfen) The reporter learned from Bank of Jiangsu that the “Su Carbon Finance” product launched by the bank recently was officially launched. This is the country’s first re-lending-backed green loan product linked to a carbon account.
The product achieves precise support for green and low-carbon projects through an innovative model that is linked to the re-lending policy and linked to the corporate carbon account.
Regarding the launch, the Bank of Jiangsu introduced that the bank issued a 5 million yuan loan to Taizhou Herun New Energy Co., Ltd. to support the construction of enterprise photovoltaic power plants. According to the company’s carbon account, the annual interest rate of its loans was determined to be 3.85%, 1.2 percentage points lower than that of the same type of loans. This loan can promote the company to reduce carbon dioxide emissions by 52,000 tons per year, save 19,000 tons of standard coal annually, and reduce sulfur dioxide and nitrogen oxide emissions by 399 tons and 135 tons respectively.
According to the relevant person in charge of the Green Finance Department of Bank of Jiangsu, “Su Carbon Rong” products have four characteristics. First of all, the product focuses precisely on green agriculture-related small and micro enterprises, and the products and services target the green agriculture-related enterprises and green private small and micro enterprises in the “Key Support Green Enterprise Directory of Jiangsu Provincial Central Bank Fund”. Secondly, the product provides diversified financing services, which can issue preferential interest rate loans, medium and long-term loans and credit loans to meet the needs of green enterprises in terms of price, duration, and guarantee methods. Third, the credit rate of the product is linked to the corporate carbon account, and the embedded carbon accounting model can automatically calculate the carbon emission reduction and incorporate it into the corporate carbon account as the basis for verifying the credit line and interest rate. Through the establishment of an environmental information disclosure mechanism, information on supporting areas and carbon emission reduction effects will be regularly disclosed. In addition, the product has supporting incentive policies, and the People’s Bank of China provides full re-lending fund support. Among them, the provincial inclusive financial development risk compensation fund can also provide credit enhancement and risk compensation if it meets the policy requirements of the financial department.
In early April of this year, Bank of Jiangsu took the lead in the industry to release a “carbon neutral” action plan. By adopting the principles of responsible banking, the concept of sustainable development was integrated into the bank’s development strategy. At present, the Bank of Jiangsu has pioneered a number of special products such as “green innovation portfolio loan”, “environmental protection loan” and “photovoltaic loan” in China. As of the end of June 2021, the bank’s green credit was 122.2 billion yuan, and various loans accounted for 8.9%.Return to Sohu to see more
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