Recently the first Green Carbon Development Summit cum Award Ceremony was staged in Shanghai. A pioneer of green finance in China—IB was awarded the first green carbon award—“Best Innovation in Carbon Finance”, another award during its exploration in green finance in the past decade, for its continuous innovations in carbon financial products and services.
As a warm-up to launch national carbon market in 2017, this summit was aimed at fulfilling promises of emission reduction to deal with climate changes after the Paris Agreement was put into effect, and was dedicated to promoting the development of national unified carbon emission trading market and drawing more attention to and participation in green and environmental-friendly cause. Over two hundred guests at home and abroad including Xie Zhenhua, special representative of Chinese climate change affairs, and Jochen Flasbarth, German secretary of government affairs, attended the summit.
As China's first Equator Bank, in 2006, IB took energy-saving & emission-reducing financing as the starting point and was the first to open up green finance market in China. After a decade’s exploration and practice, it has formed a complete green finance comprehensive service system covering green financing, green leasing, green trust, green fund, green investment and green consumption. By the end of November, IB has accumulatively granted green financing of over RMB one trillion for over 7000 energy saving & environment protection enterprises and projects, saving 26.29 million tons of coal equivalents and reducing 73.82 million tons of carbon dioxide each year. At present financing balance has exceeded RMB 470 billion.
In environmental asset trading market represented by carbon emission trading, IB also has occupied first-mover advantages. The bank was involved in the carbon market as early as 2007. It developed some types of carbon finance businesses toward international carbon trading market including carbon purchase/sale agency of clean development mechanism (CDM), carbon trading guarantee and carbon asset pledge and credit extension, and launched the first international carbon asset pledge and credit extension business, the first loan pledged by carbon quota and the first carbon quota repurchase business in succession in domestic market. At the same time, as China's carbon trading pilots progressed, IB has reached cooperation with 7 national carbon trading pilot areas, achieved full coverage in national carbon emission trading pilot cooperation, formed carbon financial service solutions covering settlement, financing, intermediary and asset management, provided financial services package including trading structure and system design, fund custody and clearing, and developed innovative products such as loan pledged by carbon quota and carbon quota repurchase. IB's leading carbon market financial service platform has taken shape, giving impetus to China's construction of carbon trading market.
Meanwhile, the Industrial Bank further expanded carbon finance services to individual clients: released the first low-carbon credit card and advocated green consumption; launched China’s first bank-based carbon trading agent account system, by which individuals can open accounts directly at Shenzhen Emissions Exchange, so they can participate in low-carbon and environmental-friendly campaigns more effectively.
Then from promoting the construction of carbon market system to offering carbon finance comprehensive service to enterprises and individuals, IB's carbon financial ecosystem has taken shape.
The launch of national unified carbon trading market in 2017 entered the countdown stage. A market institution predicted that once national carbon trading market is built in an all-round way, carbon trading will expand from spot trading to various kinds of directives such as carbon futures and options, so the market space is expected to be enlarged rapidly. It is calculated that by 2020, scale of Chinese carbon market trading will reach RMB 400 billion.
"We will continue to stride forward after a decade’s efforts and have been well-prepared for building a national carbon trading market. Moreover, IB will make more innovations, provide diversified green financial services and work to be a world-class supplier of comprehensive green financial services." Luo Shiyi, GM of Environment Finance Dept, IB, said.
It is learned that initiated by Shanghai Environment and Energy Exchange and co-sponsored by Shanghai Environment and Energy Exchange, Tianjin Emissions Exchange, Shenzhen Emissions Exchange, Guangzhou Emissions Exchange, Hubei Emissions Exchange and Sichuan United Environment Exchange, green carbon award, the first professional award set up by authorities of carbon market in China, is aimed at awarding institutions and enterprises that make prominent contributions to construction and development of Chinese carbon market, exhibiting and promoting positive results gained by Chinese carbon market, and drawing more attention to and participation in low-carbon and environmental-friendly cause.