(Yicai) Nov. 8 — In a significant development, Shanghai is taking proactive measures to establish itself as a premier international green finance hub, aiming to accelerate economic growth while fostering a sustainable, low-carbon future. This initiative is part of a broader global movement towards eco-friendly economic practices.
Gu Beibei, deputy director of the Shanghai Jinsinan Institute of Finance, emphasized during the third Green Finance Forum held in the bustling metropolis that the city has introduced a robust array of green and low-carbon policies. These initiatives are crucial in constructing a solid foundation for the development of green finance and steering Shanghai towards high-quality urban advancement.
Green finance not only bolsters the growth of green industries but also facilitates technological innovation, underscoring its multifaceted role in economic development. Notably, the Shanghai Stock Exchange has seen the issuance of an impressive 1,397 green bonds, which together account for a staggering CNY1.66 trillion (approximately USD232.3 billion). This figure represents 35.3 percent of the total volume and 30.5 percent of the value of domestic green bonds, highlighting the city’s leading position in the green finance sector.
In a remarkable showcase of innovation, Shanghai’s businesses and financial institutions have collectively issued 154 green bonds, constituting 3.9 percent of the national total. These efforts have successfully raised CNY201.2 billion (USD28.2 billion), which reflects 3.7 percent of the overall green financing landscape.
In terms of diversification and innovation in green financial products, Shanghai Lingang Economic Development Group has set a new industry standard by issuing the nation’s first carbon-neutral bond designated for affordable rental housing, as well as the world’s pioneering green dual-currency offshore bond within the free trade zone.
Moreover, Shanghai has made notable strides in carbon trading, completing over 16 carbon quota pledge transactions and generating a revenue of CNY41 million (USD5.7 million), with over 1.3 million tons of carbon quota successfully pledged. These transactions are pivotal in enhancing the city’s commitment to carbon neutrality and environmental sustainability.
As noted by Xiao Wengao, head of the city’s Putuo district, green finance serves an indispensable function in propelling the green development agenda. He highlighted its critical impact on shaping a sustainable economic framework during the forum.
Wang Zhongwei, former secretary general of the State Council, further elaborated on the essence of green finance, stating that it is fundamentally about facilitating a seamless transition towards a greener economy. While there have been observable successes from existing policies, he acknowledged that there remains considerable room for enhancements in terms of coverage and precision.
As environmental, social, and governance (ESG) frameworks drive the revaluation of green assets, Wang underscored that green finance will play a multifaceted role in supporting the ongoing green economic transition in Shanghai and beyond.
Editors: Xu Wei, Tom Litting
**Interview with Gu Beibei, Deputy Director of the Shanghai Jinsinan Institute of Finance**
**Interviewer:** Thank you for joining us today, Gu Beibei. Shanghai is making headlines for its proactive approach to green finance. Can you tell us what specific measures the city is implementing to become a leading international green finance hub?
**Gu Beibei:** Thank you for having me. Shanghai is indeed embarking on an ambitious journey to redefine its financial landscape. We have introduced a robust set of green and low-carbon policies aimed at creating a supportive environment for green finance. These regulations serve as the backbone for fostering innovation and financing projects that contribute to a sustainable, low-carbon future.
**Interviewer:** That sounds promising! How do you envision these policies influencing the overall economic growth of the city?
**Gu Beibei:** Our aim is to align economic growth with sustainable practices. Green finance will not only stimulate the growth of green industries but also drive technological innovation. This dual focus ensures that as we develop economically, we do so responsibly and sustainably.
**Interviewer:** We’ve seen impressive figures from the Shanghai Stock Exchange regarding green bonds. Can you elaborate on their impact?
**Gu Beibei:** Certainly! The issuance of 1,397 green bonds, amounting to CNY1.66 trillion, underscores Shanghai’s leading role in the domestic green finance sector. This substantial volume reflects a growing confidence among investors in environmentally friendly projects, and the funds raised are critical for advancing green infrastructure and technologies.
**Interviewer:** You mentioned that Shanghai-based businesses and financial institutions have issued 154 green bonds. What does this signify for the broader national effort in green finance?
**Gu Beibei:** This statistic represents a significant contribution to China’s overall green bond market. It shows that there is a strong commitment from local entities towards sustainable investment. By raising CNY2 billion through these bonds, we are not only fueling local projects but also setting a benchmark for other cities in how to approach green financing strategically.
**Interviewer:** Looking ahead, what are the next steps for Shanghai in its green finance journey?
**Gu Beibei:** Moving forward, we will continue enhancing our policy framework and increasing collaboration with international partners. Our goal is to further integrate green finance into the fabric of Shanghai’s economic activities, making it an indispensable part of our economic strategy and ensuring a sustainable urban future.
**Interviewer:** Thank you for sharing these insights, Gu Beibei. It’s clear that Shanghai is positioning itself as a pivotal player in the green finance landscape.
**Gu Beibei:** Thank you for the opportunity to discuss this important initiative!
