Key Summary:
1. By 2030, the green financial service system will continue to optimize, with green credit accounting for about 10% of the total loan balance.

2. Support the Guangzhou Futures Exchange to accelerate the listing of futures products that serve green development, such as electricity, silicon, and lithium, develop carbon financial derivatives, and serve the construction of the national carbon futures market.

3. Guide angel investment, venture capital, and private equity investment funds to invest in areas such as tackling key green technologies. Promote the construction of a green technology transformation platform in the Guangdong Hong Kong Macao Greater Bay Area, promote the evaluation, storage, incubation, and value-added of green technologies, and provide overall financial solutions for the transfer, transformation, and industrialization of green technologies.



Full text details:

Notice of the General Office of the People's Government of Guangdong Province on Printing and Distributing the Notice on Guangdong Province
Developing Green Finance to Support Carbon Peaking Action

Notice of Implementation Plan

Yue Ban Han [2022] No. 219



Municipal people's governments at or above the local level, various departments and directly affiliated institutions of the provincial government, and relevant units directly stationed in Guangdong:

With the approval of the Provincial People's Government, the Implementation Plan for Guangdong Province's Development of Green Finance to Support Carbon Peaking Action is now issued to you. Please implement it carefully based on the actual situation. Please report any issues encountered during implementation to the local financial regulatory bureau of the province.



Provincial Government Office

June 24, 2022



Guangdong Province's Development of Green Finance to Support Carbon Peaking Action

Implementation plan



In order to deeply implement the decisions and deployments of the Central Committee of the Communist Party of China and the State Council on doing a good job in achieving carbon peak and carbon neutrality, create a green financial service system that is in line with the actual situation of Guangdong, and strongly support our province in achieving the carbon peak goal on schedule, in accordance with the Implementation Opinions of the Guangdong Provincial Committee of the Communist Party of China and the Guangdong Provincial People's Government on Fully, Accurately and Comprehensively Implementing the New Development Concept to Promote Carbon Peak and Carbon Neutrality, the following implementation plan is formulated.

1、 Overall requirements

（1） Guiding ideology.



（2） Basic principles.

1. Strengthen leadership and regional coordination. Fully leverage the radiating and driving role of Guangzhou and Shenzhen in the field of green finance, combine with the regional development pattern, adapt to local conditions, and coordinate the innovative development of green finance in the Pearl River Delta region, northern ecological development zone, and coastal economic belt.

2. Strengthen government guidance and social participation. Strengthen the role of the government in guiding green finance planning, standardizing operations, and ensuring services, establish and improve incentive and constraint mechanisms, and support the market-oriented and professional development of green finance.

3. Balancing the needs of low-carbon technology development and industrial transformation. We need to support both green technology innovation and the development of green industries, as well as the low-carbon transformation of high carbon industries, to prevent a one size fits all approach and avoid blindly withdrawing loans from high carbon emission industries.

4. Balancing reform and innovation with financial security. Actively and prudently promote innovation in the green finance organizational system, product tools, and institutional mechanisms. Strengthen risk awareness, enhance the ability to identify new risks in the field of green finance, and firmly guard the bottom line of financial security.

（3） Objective requirements.

Strive to establish a green financial service system that is compatible with carbon peaking by 2025, improve green financial standards in key areas, and continuously improve risk control systems. There are 40 green specialized institutions established in the province, and the growth rate of green loan balances is not lower than that of various loan balances. The scale of direct financing is steadily expanding, and the issuance scale of credit green bonds and green financial bonds has doubled compared to 2020. Green insurance has fully and deeply participated in climate and environmental risk management, providing cumulative risk protection of over 300 billion yuan.

By 2030, the green financial service system will continue to optimize, with green credit accounting for about 10% of all loan balances. Diversified green financial products and derivative instruments will continue to innovate and enrich, and the value realization and trading system of ecological products will continue to improve. The carbon finance market will operate effectively; Support the smooth achievement of our province's carbon peak target before 2030.

2、 Main measures

（1） Overall planning for the development of green finance throughout the province.

1. Continuously enhance the radiation and driving ability of green finance in the core area of the Pearl River Delta. Support the Guangzhou Futures Exchange to accelerate the listing of futures products that serve green development, such as electricity, silicon, and lithium, develop carbon financial derivatives, and serve the construction of the national carbon futures market. Building a green finance innovation and development platform based on the Shenzhen Stock Exchange, guiding listed companies to actively disclose carbon emission information, and carrying out product innovation such as the Green Securities Index and the Environmental, Social, and Corporate Governance (ESG) evaluation system. Support Guangzhou to continue deepening green finance reform, strive to upgrade and build green finance reform demonstration zones, and carry out pilot projects for investment and financing in response to climate change. Support Shenzhen to accelerate the construction of the National Climate Investment and Financing Promotion Center and the National Independent Contribution Project Library. Strengthen the "dual city linkage" between Guangzhou and Shenzhen, jointly establish and improve the development system and mechanism of carbon finance and green finance, and promote the gathering and development of green finance professional service institutions. Support cities at or above the prefecture level in the Pearl River Delta to improve green finance development support policies according to local conditions. (Led by municipal governments at or above the prefecture level in the Pearl River Delta, with the cooperation of the Provincial Development and Reform Commission, Department of Ecology and Environment, Local Financial Supervision Bureau, Guangzhou Branch of the People's Bank of China, Guangdong Banking and Insurance Regulatory Bureau, Shenzhen Central Branch of the People's Bank of China, Shenzhen Banking and Insurance Regulatory Bureau, Shenzhen Stock Exchange, and Guangzhou Futures Exchange)

2. Improve the level of financial services for the development of green industries in the coastal economic belt. Support the provincial sub central cities of Shantou and Zhanjiang to actively connect with the green financial resources of the Guangdong Hong Kong Macao Greater Bay Area. Guide financial institutions to increase their capital investment, comprehensively use credit, bonds, leasing, industry funds and other methods to support the development of new energy, clean and low-carbon energy industries such as offshore wind power, photovoltaic power generation, nuclear power, and gas power, support the linkage of energy-saving and consumption reducing transformation of coal-fired power units, heating transformation, and flexible transformation and manufacturing, and promote financial service innovation such as renewable energy subsidies, rights confirmation loans, etc. Carry out pilot carbon sequestration accounting for oceans, wetlands, and other areas. Encourage eligible enterprises and financial institutions to explore innovative products such as blue bonds, and support the sustainable development of the blue economy. (Led by the governments of cities at or above the prefecture level in the coastal economic zone, with the cooperation of the Provincial Development and Reform Commission, Department of Natural Resources, Department of Ecology and Environment, Local Financial Supervision Bureau, Guangzhou Branch of the People's Bank of China, Guangdong Banking and Insurance Regulatory Bureau, Guangdong Securities Regulatory Bureau, Shenzhen Banking and Insurance Regulatory Bureau, and Shenzhen Securities Regulatory Bureau)

3. Promote the realization of economic value of ecological products in the northern ecological development zone. Guide local level cities in the northern ecological development zone to explore the establishment of institutional mechanisms such as ecological product ownership registration, basic information investigation, and value evaluation accounting, and promote the application of ecological product value accounting results in the financial field. Expand the scale of forestry carbon sink trading and explore the realization of the value of ecological products such as agriculture and urban green spaces. Guide local legal person financial institutions to innovate and carry out environmental rights and ecological protection compensation collateral financing, better support the development of green industries such as green agriculture, clean medicine, tourism and health care in the ecological zone of northern Guangdong. Explore the issuance of corporate ecological bonds. Encourage cities at all levels in the northern ecological development zone to coordinate financial transfer payments in the ecological field, explore the use of industrial development funds and risk compensation funds, and support the construction of ecological product value realization projects based on systematic protection and restoration of the ecological environment. (Led by local municipal governments in the Northern Ecological Development Zone, with the cooperation of the Provincial Development and Reform Commission, Department of Finance, Department of Natural Resources, Department of Ecology and Environment, Department of Agriculture and Rural Affairs, Local Financial Supervision Bureau, Guangzhou Branch of the People's Bank of China, Guangdong Banking and Insurance Regulatory Bureau, and Guangdong Securities Regulatory Bureau)

（2） Improve the construction of a green financial system.

1. Improve the green finance organizational system. Encourage domestic and foreign financial institutions with conditions to establish green finance business units and branches, formulate green finance business management measures, and implement differentiated operations in customer access, business processes, performance evaluation, and claims management. Support financial institutions to establish green finance business centers, green finance training centers, green product innovation laboratories and other organizational structures, and enhance the research and development of green finance products and green finance risk prevention and control capabilities. Support the establishment of local financial organizations such as green small loan companies, green financing guarantee companies, and green financing leasing companies to serve the development of green industries. Support domestic and foreign financial institutions and enterprises to establish green industry funds to serve the green and low-carbon transformation of the economy. Encourage green finance research institutions and professional think tanks to innovate and develop. (Led by the Guangdong Banking and Insurance Regulatory Bureau, Guangdong Securities Regulatory Bureau, Shenzhen Banking and Insurance Regulatory Bureau, and Shenzhen Securities Regulatory Bureau, with the cooperation of the Provincial Local Financial Supervision Bureau, Guangzhou Branch of the People's Bank of China, Shenzhen Central Branch of the People's Bank of China, and municipal governments at or above the local level)

2. Enrich the green finance product system. Encourage financial institutions to develop differentiated financial products and innovate financial products such as green credit loans, green credit asset securitization, carbon asset-backed commercial paper, and green supply chain bill financing. Guide and support eligible financial institutions and enterprises to issue green bonds and green bond financing tools such as climate bonds, sustainable development linked bonds, and transformation bonds both domestically and internationally. Reduce the difficulty and cost of issuing bonds for green and low-carbon enterprises through credit risk mitigation vouchers and guarantee credit enhancement. Support financial institutions in developing green and sustainable development themed financial products such as wealth management, trusts, and funds. Build a multi scenario green insurance product system, carry out innovation in green insurance products such as clean technology insurance, green industry, construction insurance, carbon trading credit guarantee insurance, carbon sink loss insurance, catastrophe insurance, climate change index, etc., and explore differentiated insurance rate mechanisms. Encourage insurance institutions to participate in the construction of environmental and risk governance systems, and study environmental and climate risk monitoring and early warning mechanisms for policyholders. Encourage the development of financing leasing business for major energy-saving, low-carbon and environmental protection equipment. Explore the development of specialized government green financing guarantee business, support innovative models of guarantee institutions, expand guarantee coverage, increase credit multiples, and support investment and financing in the green field. (Led by the Guangzhou Branch of the People's Bank of China and the Shenzhen Central Branch of the People's Bank of China, with the cooperation of the Provincial Department of Finance, Local Financial Supervision Bureau, Guangdong Banking and Insurance Regulatory Bureau, Guangdong Securities Regulatory Bureau, Shenzhen Banking and Insurance Regulatory Bureau, and Shenzhen Securities Regulatory Bureau)

3. Accelerate the cultivation of a green financial intermediary service system. Establish a provincial-level green certification center, carry out professional certification for green projects, and use the certification results as the basis for implementing incentive policies such as green financing and fiscal incentives. Encourage the rapid development of green intermediary service institutions such as carbon accounting and verification, green certification, environmental consulting, green asset assessment, and data services, and establish a sound system for identifying, certifying, evaluating, and managing risks for green and low-carbon projects and enterprises. (Led by the Provincial Department of Ecology and Environment, the Local Financial Supervision Bureau, and coordinated by the Provincial Department of Finance, the Guangzhou Branch of the People's Bank of China, the Guangdong Banking and Insurance Regulatory Bureau, the Guangdong Securities Regulatory Bureau, the Shenzhen Central Branch of the People's Bank of China, the Shenzhen Banking and Insurance Regulatory Bureau, the Shenzhen Securities Regulatory Bureau, and municipal governments at or above the local level)

4. Improve the construction of green finance infrastructure. Build a local standard system for green finance, study and formulate provincial green finance standards, and strengthen the application of green finance standards in the evaluation of green financing enterprises and projects. Explore carbon emission accounting and "carbon footprint" tracking, relying on professional technical institutions such as Guangzhou Carbon Emission Trading Center, to comprehensively account, register, evaluate, and evaluate the carbon emissions generated by the operation and investment and financing activities of enterprises and institutions, as well as individual carbon reduction behaviors. Improve the green finance credit system, rely on the provincial small and medium-sized enterprise financing platform, the provincial small and medium-sized enterprise credit information and financing docking platform and other enterprise financing service platforms, connect with the provincial carbon emission monitoring and management cloud platform, strengthen the sharing of ecological environment protection information and financial information, provide financial institutions with multi-channel and multi-dimensional green industry, project information and green financing enterprise portraits, and assist in solving the effective connection between green project identification and financial services. (Led by the Provincial Local Financial Supervision Bureau and the Guangzhou Branch of the People's Bank of China, with the cooperation of the Provincial Development and Reform Commission, the Department of Industry and Information Technology, the Department of Ecology and Environment, the Department of Transportation, the Department of Housing and Urban Rural Development, and the Government Service Data Management Bureau)

5. Promote the green transformation of financial institutions. Establish a green finance information disclosure and supervision mechanism, carry out a special action on green and low-carbon in the banking and insurance industries, implement demonstrations of zero carbon (low-carbon) institutional network construction, green finance product innovation, green project financial service model innovation, green finance digital information system transformation and improvement, and financial institution environmental information and investment and financing activity carbon footprint disclosure. Encourage financial institutions to develop work plans and medium - to long-term strategic plans to support carbon peaking actions, establish encouraging performance evaluations, incentive constraints, and internal risk management systems, and use various means to achieve carbon peaking. (Guangzhou Branch of the People's Bank of China, Guangdong Banking and Insurance Regulatory Bureau, Guangdong Securities Regulatory Bureau, Shenzhen Central Branch of the People's Bank of China, Shenzhen Banking and Insurance Regulatory Bureau, Shenzhen Securities Regulatory Bureau, and Provincial Local Financial Regulatory Bureau shall implement their respective responsibilities)

（3） Innovate, optimize and upgrade the industrial structure of green financial services.

1. Support the construction of green and low-carbon industrial parks and the improvement of modern industrial systems. Based on the provincial supply chain finance innovation pilot, explore green supply chain finance service solutions linked to carbon emission intensity, and accurately support the low-carbon development of strategic pillar industry clusters and strategic emerging industry clusters such as the new generation electronic information industry, automotive industry, and smart home appliances. Encourage banking and insurance institutions to actively carry out innovation in green small and micro finance and green supply chain finance based on the digital map of the industrial chain and the carbon peak roadmap of key industries, and promote the reduction of carbon emission intensity throughout the entire industrial chain. Establish a positive list for the green and low-carbon development of industrial parks, guide financial institutions to provide key credit support, and effectively support the smooth implementation of circular and green transformation of industrial parks throughout the province. (Led by the Guangzhou Branch of the People's Bank of China, the Guangdong Banking and Insurance Regulatory Bureau, the Shenzhen Central Branch of the People's Bank of China, and the Shenzhen Banking and Insurance Regulatory Bureau, with the cooperation of the Provincial Development and Reform Commission, the Department of Industry and Information Technology, the local financial regulatory bureau, the Guangdong Securities Regulatory Bureau, and the Shenzhen Securities Regulatory Bureau)

2. Support the development of green and low-carbon technologies and industrial development. Explore the management mechanism of green technology list, establish three lists: energy conservation and carbon reduction technology transformation catalog, green and low-carbon technology achievement transformation catalog, and green and low-carbon industry guidance catalog. Promote the allocation of financial resources towards green industries such as energy conservation and environmental protection, clean production, clean energy, green upgrading of ecological environment and infrastructure, and green services. Deepen innovation in financing service methods such as investment and loan linkage, and guide financial institutions to increase funding support for low-carbon, zero carbon, and negative carbon cutting-edge/disruptive technology breakthroughs. Strengthen support and services for the listing of green enterprises, guide various eligible green enterprises to list for financing and refinancing, and innovate the development of regional equity trading markets with green dual carbon boards. Support advantageous green leading enterprises to carry out mergers and acquisitions. Guide angel investment, venture capital, and private equity investment funds to invest in areas such as tackling key green technologies. Promote the construction of a green technology transformation platform in the Guangdong Hong Kong Macao Greater Bay Area, promote the evaluation, storage, incubation, and value-added of green technologies, and provide overall financial solutions for the transfer, transformation, and industrialization of green technologies. (Led by the Provincial Department of Science and Technology and the Local Financial Supervision Bureau, with the cooperation of the Guangzhou Branch of the People's Bank of China, the Guangdong Banking and Insurance Regulatory Bureau, the Guangdong Securities Regulatory Bureau, the Shenzhen Central Branch of the People's Bank of China, the Shenzhen Banking and Insurance Regulatory Bureau, the Shenzhen Securities Regulatory Bureau, and the Shenzhen Stock Exchange)

3. Support the low-carbon transformation of traditional high energy consuming industries. Take the lead in piloting enterprise carbon accounts in some cities or regions, establish a measurable system for enterprise production carbon emissions, and calculate enterprise carbon emission levels based on carbon emission intensity. Encourage financial institutions to incorporate environmental performance such as corporate carbon emissions information and third-party environmental credit evaluations into the credit approval management process, adopt differential pricing and credit, and form constraints and incentives for carbon control and emission reduction for enterprises in industries such as steel, petrochemicals, cement, ceramics, and papermaking, promoting the low-carbon transformation of high energy consuming industries. Support "two high" enterprises to actively apply for national special re loans for clean and efficient utilization of coal and carbon reduction support tools, and obtain lower cost funds to implement consumption reduction upgrades and green transformation. Encourage insurance institutions to participate in the construction of environmental risk management systems, continuously promote the implementation of mandatory liability insurance pilot programs for environmental pollution in high-risk areas such as heavy metals, hazardous chemicals, and hazardous waste disposal, and strive to achieve full coverage of mandatory liability insurance for environmental pollution in high-risk areas throughout the province by 2025. (Led by the Guangzhou Branch of the People's Bank of China, the Guangdong Banking and Insurance Regulatory Bureau, the Shenzhen Central Branch of the People's Bank of China, and the Shenzhen Banking and Insurance Regulatory Bureau, with the cooperation of the Provincial Development and Reform Commission, the Department of Industry and Information Technology, the Department of Ecology and Environment, the Local Financial Supervision Bureau, and relevant municipal governments at or above the prefecture level)

4. Support the carbon peak action in key areas. Establish a green project database at the provincial, municipal, and county levels with carbon emission intensity and green attributes as core indicators, and select major green industry projects with low carbon emissions from the provincial level for storage. Regularly release financing needs for green and low-carbon projects, and promote normalized financing docking. Develop operational guidelines for green finance service projects, collect and organize carbon peak cases in key areas supported by green finance, and guide financial institutions to innovate and diversify green finance service methods. Support financial leasing companies to carry out green leasing business in areas such as green buses, new energy vehicles, and new energy storage facilities. Encourage policy banks to increase their support for green development in the agricultural sector, encourage financial institutions to explore comprehensive financial service models such as "insurance+futures+banking", and support innovative development of green agriculture. Expand investment and financing channels for green projects in key areas, explore asset securitization products based on future returns on green infrastructure, fully utilize real estate investment trusts (REITs) in the infrastructure sector, guide insurance funds to increase medium - and long-term support for key areas such as renewable energy, green agriculture, green buildings, and green transportation, encourage financial institutions to formulate credit support policies based on actual conditions, and provide green financial support to new building industrialization projects that meet the star standard for green buildings. (Led by the Provincial Development and Reform Commission and the Local Financial Supervision Bureau, with the cooperation of the Provincial Department of Industry and Information Technology, Department of Natural Resources, Department of Ecology and Environment, Department of Transportation, Department of Agriculture and Rural Affairs, Department of Housing and Urban Rural Development, Guangzhou Branch of the People's Bank of China, Guangdong Banking and Insurance Regulatory Bureau, Guangdong Securities Regulatory Bureau, Shenzhen Central Branch of the People's Bank of China, Shenzhen Banking and Insurance Regulatory Bureau, and Shenzhen Securities Regulatory Bureau)

（4） Further accelerate the construction of carbon finance markets.

1. Improve the functions of Guangdong's carbon finance market. Cultivate regional environmental rights and interests trading markets, and improve environmental rights and interests trading mechanisms such as carbon emission rights, emission rights, energy rights, and water rights. Explore the establishment of an environmental rights trading and financial service platform, promote contract energy management, contract water-saving management, and contract environmental service financing. Gradually include high carbon emission sectors such as transportation, data centers, ceramic production, and textile industries, as well as public buildings with ultra-high, ultra-high, and ultra-high energy consumption, in the carbon emission trading pilot program. Encourage financial institutions to participate in carbon market trading under the premise of complying with regulatory regulations, and provide services such as fund custody, clearing, settlement, carbon asset management, and agency account opening for carbon trading. Explore cross-border facilitation mechanisms for carbon trading, carry out carbon emission trading forex pilot projects, actively use cross-border RMB payment systems, and attract investors from Hong Kong, Macao, and overseas. (Led by the Provincial Department of Ecology and Environment, with the cooperation of the Provincial Development and Reform Commission, Local Financial Supervision Bureau, Guangzhou Branch of the People's Bank of China, Guangdong Banking and Insurance Regulatory Bureau, Shenzhen Central Branch of the People's Bank of China, and Shenzhen Banking and Insurance Regulatory Bureau)

2. Enrich and develop carbon financial instruments. Explore the development of financial products such as carbon asset mortgage financing, carbon asset custody, carbon repurchase, carbon funds, carbon leasing, and structured deposits for carbon emission rights income to enhance the liquidity of the carbon market. Support financial institutions in developing new mortgage financing models based on environmental rights such as carbon emission rights, pollution discharge rights, energy use rights, and green project charging rights. Explore the establishment of an efficient mortgage registration and publicity system to promote environmental rights and their future income rights to become qualified collateral. Encourage financial institutions to actively participate in carbon inclusive systems, expand the consumption scenarios of carbon inclusive systems, and provide financial services for carbon inclusive projects. (Led by the Guangzhou Branch of the People's Bank of China and the Shenzhen Central Branch of the People's Bank of China, with the cooperation of the Provincial Department of Ecology and Environment, the Local Financial Supervision Bureau, the Guangdong Banking and Insurance Regulatory Bureau, the Guangdong Securities Regulatory Bureau, the Shenzhen Banking and Insurance Regulatory Bureau, and the Shenzhen Securities Regulatory Bureau)

（5） Strengthen cooperation in the field of green finance in the Guangdong Hong Kong Macao Greater Bay Area.

1. Strengthen cooperation and development in green finance. Establish a Guangdong Hong Kong Macao Green Finance Cooperation Task Force and establish a mechanism for green finance information exchange and sharing. By relying on the Hengqin Guangdong Macao Deep Cooperation Zone, Qianhai Shenzhen Hong Kong Modern Service Industry Cooperation Zone, and Guangzhou Nansha Guangdong Hong Kong Macao Comprehensive Cooperation Demonstration Zone, a new mechanism for cooperation and opening up will be established to build a green finance cross-border service platform, promote effective integration of financial resources and green projects, and promote the cultivation and exchange of green finance talents. Establish a reserve for green bond projects, establish a green bond issuance service center, and support mainland enterprises in the Guangdong Hong Kong Macao Greater Bay Area to issue green bonds in Hong Kong and Macao. Explore cross-border green financing and cross-border transfer of green financial assets, and support foreign investors to participate in green investment through channels such as direct investment, Qualified Foreign Institutional Investors (QFII), and Qualified Foreign Limited Partners (QFLP). Actively connect with international financial organizations and institutions, attract overseas insurance companies, sovereign funds, pension funds, and ESG funds to provide investment, financing, and technical services for green projects in the Guangdong Hong Kong Macao Greater Bay Area. Explore carbon financial derivatives denominated in RMB and encourage the use of RMB as the cross-border settlement currency for related transactions. (Led by the Provincial Local Financial Supervision Bureau, with the cooperation of the Provincial Development and Reform Commission, the Guangzhou Branch of the People's Bank of China, the Guangdong Banking and Insurance Regulatory Bureau, the Guangdong Securities Regulatory Bureau, the Shenzhen Central Branch of the People's Bank of China, the Shenzhen Banking and Insurance Regulatory Bureau, the Shenzhen Securities Regulatory Bureau, the Guangzhou and Shenzhen Municipal Governments, and the Hengqin Office of the Provincial Government)

2. Promote mutual recognition and recognition of green finance standards and services in the Guangdong Hong Kong Macao Greater Bay Area. Collaborate with Hong Kong and Macao to conduct research on standards, systems, and products in the field of carbon finance, and promote mutual recognition and learning of green finance standards such as environmental information disclosure, green finance product standards, green enterprise project recognition standards, green credit rating evaluation, and green bond principles (GBP) among Guangdong, Hong Kong, and Macao. Explore mutual recognition and recognition of green financial services in the Guangdong Hong Kong Macao Greater Bay Area. Relying on the Guangdong Hong Kong Macao Greater Bay Area Green Finance Alliance, we will explore certification, registration, trading, and settlement rules, including carbon emission rights and voluntary emission reduction projects. We will strengthen communication and cooperation with international institutions and platforms, and take the lead in green and sustainable development evaluation, climate investment and financing, and other aspects. (Led by the Provincial Local Financial Supervision Bureau, with the cooperation of the Guangzhou Branch of the People's Bank of China, Guangdong Banking and Insurance Regulatory Bureau, Guangdong Securities Regulatory Bureau, Shenzhen Central Branch of the People's Bank of China, Shenzhen Banking and Insurance Regulatory Bureau, Shenzhen Securities Regulatory Bureau, and Guangzhou and Shenzhen Municipal Governments)

（6） Strengthen the monitoring and prevention of green finance risks.

1. Strengthen the management of the subsequent use of funds for green financial products. Guide financial institutions to strengthen the follow-up management of funds for green finance products, supervise the use of product funds for agreed purposes, and avoid the risk of project greenwashing. If any illegal misappropriation of funds is found, necessary internal risk control measures should be taken in a timely manner. (Led by Guangdong Banking and Insurance Regulatory Bureau, Guangdong Securities Regulatory Bureau, Shenzhen Banking and Insurance Regulatory Bureau, Shenzhen Securities Regulatory Bureau, with cooperation from Provincial Local Financial Supervision Bureau, Guangzhou Branch of the People's Bank of China, and Shenzhen Central Branch of the People's Bank of China)

2. Establish a green finance risk monitoring and prevention mechanism. Guide financial institutions to reasonably calculate the risk exposure of high carbon assets and continuously optimize asset quality. Guide financial institutions to establish a sound risk stress testing system, effectively covering the financial risks of climate change and the "transformation risks" of green and low-carbon economy, research and launch risk response tools, and continuously carry out high-quality information disclosure. Strengthen monitoring and prevention of default risks for green bond issuers. Support financial institutions in building green finance risk monitoring and early warning systems, green finance risk analysis systems, and green finance business information management systems. Utilize technological means to enhance the ability to identify green finance risks, conduct regular risk assessments, prepare emergency plans, and effectively prevent and resolve financial risks. (Led by the Guangzhou Branch of the People's Bank of China, the Shenzhen Central Branch of the People's Bank of China, the Guangdong Banking and Insurance Regulatory Bureau, and the Shenzhen Banking and Insurance Regulatory Bureau, with the cooperation of the Provincial Local Financial Supervision Bureau, Guangdong Securities Regulatory Bureau, and Shenzhen Securities Regulatory Bureau)

（7） Build a precise and effective green finance incentive policy system.

1. Strengthen financial support for innovative development of green finance. Coordinate the use of fiscal special funds, support the establishment of green finance development special funds through listing at various levels, improve the subsidy and risk sharing mechanism for financing costs of green and low-carbon projects, compensate financial institutions for green credit risks, provide subsidies for green certification and financing guarantee fees for small and micro enterprises to obtain green financing, and provide subsidies for direct financing of green enterprises in the capital market. Encourage eligible green sector construction projects to apply for the demand for new local government special bonds. Research the establishment of a green and low-carbon development fund, and encourage local governments and social capital with conditions to jointly establish green and low-carbon funds in accordance with market-oriented principles. (Led by the Provincial Development and Reform Commission, Department of Finance, and Local Financial Supervision Bureau, with cooperation from municipal governments at or above the local level)

2. Establish a sound supporting mechanism for the development of green finance. Actively utilize the People's Bank of China's carbon reduction support tools, and incentivize financial institutions to increase financing support for the green sector through structural monetary policy tools such as refinancing and rediscounting. Using eligible green loans and green bonds as qualified collateral for issuing re loans to facilitate the management of liquidity by local corporate banks. The study will include information disclosure, support for carbon reduction activities, and green bond holdings as new indicators in the green evaluation index system of financial institutions. Green finance evaluation will be conducted, and the evaluation results will be explored to be included in the central bank's rating as a reference for the priority use of the central bank's special monetary policy, local government departments' special incentive policies, and fiscal fund management bidding. Support the application of green finance innovation projects for financial innovation awards. (Led by the Guangzhou Branch of the People's Bank of China and the Shenzhen Central Branch of the People's Bank of China, with the cooperation of the Provincial Department of Finance, the Local Financial Supervision Bureau, the Guangdong Banking and Insurance Regulatory Bureau, and the Shenzhen Banking and Insurance Regulatory Bureau)

3. Carry out provincial green inclusive finance innovation pilot projects. Encourage eligible parks, regions, and institutions to actively apply for and carry out green inclusive financial innovation pilot projects such as carbon accounts, carbon inclusiveness, and carbon sinks, based on the balanced development layout of our province's regions. All relevant departments should provide policy support to parks, regions, and institutions approved for provincial green finance innovation pilot projects. Each pilot unit formulates pilot plans based on regional advantages and industrial characteristics, focuses on key and difficult issues in green finance, and carries out pilot trials to explore the effective implementation of the province's financial support for carbon peak action. (Led by the Provincial Local Financial Supervision Bureau, with the cooperation of the Provincial Development and Reform Commission, Department of Finance, Department of Ecology and Environment, Guangzhou Branch of the People's Bank of China, Guangdong Banking and Insurance Regulatory Bureau, Guangdong Securities Regulatory Bureau, and relevant municipal governments at or above the prefecture level)

3、 Safeguard measures

（1） Strengthen organizational leadership and overall coordination. Establish a green finance leadership group led by the deputy governor in charge, with relevant provincial departments and the financial management and regulatory departments directly stationed in Guangdong as members, to coordinate and promote relevant work and solve key and difficult problems in the work. The daily work of the leadership group is the responsibility of the Provincial Local Financial Supervision Bureau. Each member unit should strengthen linkage and cooperation, form effective work synergy, and report relevant work situations to the provincial and local financial supervision bureau for summary.

（2） Establish a digital information sharing mechanism. Promote the sharing of green and low-carbon information, regularly collect and update enterprise carbon accounts, green and low-carbon project libraries, environmental credit information and other green information, and establish an information push mechanism for financial institutions at the provincial, municipal, and county levels.

（3） Strengthen statistical monitoring. Improve the special statistical system for green credit and green bonds, explore the establishment of a green finance statistical indicator system and a green finance statistical work system covering banks, insurance, and securities, and strengthen the monitoring of local governments and financial institutions in promoting green finance work.