Shanghai municipal authorities are pushing for rapid growth in green financing over the next several years, as part of efforts to advance China’s twin carbon mitigation goals of achieving peak carbon by 2030 and carbon neutrality by 2060.
The Shanghai banking and insurance regulatory authority recently led the release of the “Shanghai Banking and Insurance Sector Action Plan for Driving the Development of Green Finance and Servicing the Peak Carbon and Carbon Neutrality Strategies During 14th Five Year Plan” (上海银行业保险业“十四五”期间推动绿色金融发展 服务碳达峰碳中和战略的行动方案).
The Plan sets a slew of targets for 2025, being the final year of the 14th Five Year Plan. These include:
- Achieving a green finance balance of over 1.5 trillion yuan.
- The formation of green finance industry standards.
- The basic formation of a green finance ecosystem of services by the Shanghai banking and insurance sectors that are suited to achieving peak carbon.
- The stable development of operations including green finance, green bonds, green funds, green trusts, green asset management and green leasing.
- Continual increases in green finance innovation capabilities.
- The formation of a green finance plan for Shanghai which is reproducible and can be further expanded.
The Shanghai banking and insurance authority said the next step would be to continue to guide banking and insurance institutions in “clarifying specific tasks, engaging in active and responsible conduct, implementing work responsibilities, and consciously implementing each of the requirements of the ‘Shanghai Green Finance Action Plan’ in all areas.”