China has releasedguidelines on investment and financing activities surrounding climate change, marking another step for the government in gearing up the country’s financial sector to embrace a green future, reported Caixin.
The guidelines — jointly published by the Ministry of Ecology and Environment, the National Development and Reform Commission, the People’s Bank of China, the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission — specified how relevant entities should come up with policies and measures, and how domestic and overseas investment should be encouraged to enter the sector, said Caixin.
The guidelines dated Oct. 20 suggest that such investment and financing activities, intended to steer investment toward mitigating and adapting to climate change, are essential parts of green finance. The guidelines also addressed regulatory policies to help various types of financial institutions develop climate-friendly green financial products and provide financial support for major climate projects.
Qualified climate-friendly businesses will be encouraged to seek financing or refinancing on the capital markets, and small businesses and the general public will be encouraged to participate in actions addressing climate change, according to the guidelines.