Beijing’s Plan to green its Financial System and become Carbon Pricing Center

10 October 2017 – Various Beijing Municipal Bureaus and the People’s Bank of China jointly issued an incentive plan promoting financial supply-side structural reforms in order to accomplish a core objective of establishing a ‘green finance system’. The strategy seeks to develop the capital’s carbon market and carbon-related financial products with the long-term goal to become China’s carbon pricing center. Measures target refinancing facilitation of green enterprises, which are often neglected by risk-averse banks in favour of larger state-owned enterprises. A new government-backed green development fund is to promote investment in high return projects, while securities products backed by green debt are to attract pension funds and private equity funds in the transition to a low-carbon economy.

The incentive plan was jointly issued by the Beijing Municipal Bureau of Financial Work, Beijing Development and Reform Committee, Beijing Municipal Bureau of Finance, Beijing Municipal Environmental Protection Bureau, Beijing Operations Office of China People’s Bank, Beijing Bureau of China Banking Regulatory Commission, Beijing Bureau of China Securities Regulatory Commission as well as Beijing Bureau of China Insurance Regulatory Commission.