News eDaily08 Sep 2017

China:Insurers urged to carry out more green finance research

08 Sep 2017

Insurance, securities and asset management companies and banks have been urged to do more research on green financing.

Ma Jun, chief economist of the research bureau of the People's Bank of China, the central bank, called for capacity building for the development of green financing at an event in Beijing this week.

Mr Ma, who is also head of the Green Finance Committee of the China Society for Finance and Banking, called for improvement in capacity to develop analytical methodology and tools, to create a variety of green finance products and to train talent, reported China Daily.

Many institutions in China are not aware of the tools for analysing environmental risks, such as scenario and sensitivity analysis tools, which can help them to fund more capital into low carbon and green industries, he said.

There is a lack of awareness about how to quantify the benefits and costs of environmental projection projects, he added.

He also called for capacity building to develop green financing products. He gave examples of how insurance products for green projects, asset-backed securities and carbon emissions rights collateral products can play a positive role in green financing.

China's State Council specified for the first time that the country will establish a green finance system in a document on ecological system reform released in September 2015.

In August 2016, the PBOC and several ministries published a guideline on building the green finance system which included 35 suggestions.

In June this year, the State Council approved a plan to develop five new green finance pilot zones in Zhejiang, Guangdong, Guizhou and Jiangxi provinces, as well as in Xinjiang.



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