In order to implement the strategic deployment of the five major articles of the Central Financial Work Conference on green finance, give full play to the important function of the capital market to optimize resource allocation and the leading and exemplary role of central enterprises in green investment, the China Securities Regulatory Commission and the State-owned Assets Supervision and Administration Commission of the State Council recently jointly issued the Notice on Supporting Central Enterprises in Issuing Green Bonds (hereinafter referred to as the Notice).

In recent years, the CSRC has earnestly implemented the new development concept and actively promoted the green development of capital market services. In 2016, pilot projects for green bonds were launched, institutional arrangements for issuing green bonds, investment of raised funds, and information disclosure were improved, and qualified enterprises were strongly supported in financing development through green bonds, steadily expanding the scale of green bonds. The State-owned Assets Supervision and Administration Commission of the State Council encourages central enterprises to actively participate in the green bond market and take advantage of the opportunities of bond market reform and development to accelerate green low-carbon transformation and high-quality development. Up to now, the stock exchange market has issued more than 700 billion yuan of green bonds, raising funds to invest in resource conservation and recycling, pollution prevention and control, clean energy, ecological protection and other fields, and effectively guide more allocation of factor resources to the green field.

Central enterprises are the key subjects to achieve the goal of carbon peak and carbon neutrality in China, and also the main force of green bond issuance. The release of the Notice will further enhance the ability of the capital market to serve the green and low-carbon development of central enterprises, support the optimization and upgrading of the industrial structure and energy structure of central enterprises, strengthen the key research and application layout of green and low-carbon technology of central enterprises, form a demonstration effect, better drive and support the green and low-carbon development of the private economy, and promote the comprehensive green transformation of economic and social development.

The main contents of the Notice include: first, improve the financing support mechanism for green bonds, and develop various industries such as energy conservation and carbon reduction, environmental protection, resource recycling, and clean energy. The second is to assist central enterprises in green low-carbon transformation and high-quality development, rationally arrange bond financing, accelerate the formation of green low-carbon production methods, strengthen green scientific and technological innovation, and give play to the demonstration role of central enterprises in green low-carbon development. The third is to give play to the leading role of central enterprises in green investment, lead the supply of funds in key areas of green development, and support central enterprises to carry out pilot infrastructure REITs. The fourth is to strengthen the organization and implementation of the guarantee, the CSRC and the State-owned Assets Supervision and Administration Commission of the State Council jointly promote the central enterprises to better use green bond financing, optimize the capital market to serve the green field financing.

In the next step, the CSRC and the State-owned Assets Supervision and Administration Commission of the State Council will thoroughly implement the spirit of the Central Financial Work Conference, work with relevant parties to implement various measures, strengthen the capacity building of the capital market to serve green development, promote the synergy of pollution reduction and carbon reduction, and actively contribute to further promoting the high-quality development of finance and achieving the goal of reaching the peak of carbon neutrality.

Source: China Securities Regulatory Commission