China issues Guidance Policy for Climate Investment and Finance
On 21 Oct 2021, Ministry of Ecology and Environment (MEE), National Development and Reform Commission (NDRC), People’s Bank of China (PBOC), China Banking and Insurance Regulatory Commission (CBIRC), and China Securities Regulatory Commission (CSRC) jointly launch a guidance document to promote climate investment and finance in China. The preliminary translation of the policy document is listed as below. CIFE will post an updated translation in due course.
关于促进应对气候变化投融资的指导意见
Guidance for Promoting Climate Investment and Finance
各省、自治区、直辖市生态环境厅（局）、发展改革委，新疆生产建设兵团生态环境局、发展改革委；中国人民银行上海总部，各分行、营业管理部，各省会（首府）城市中心支行，各副省级城市中心支行；各银保监局；各证监局；各政策性银行、大型银行、股份制银行：
To all Provincial, Autonomous Regional and Municipal Departments (Bureaus) of Ecology and Environment, and Development and Reform Commissions, The Xinjiang Production and Construction Corps Ecology and Environment Bureau, and Development and Reform Commission; The People’s Bank of China Shanghai Head Office, Branches and Operations Offices, Provincial Capital Central Sub-branches, Municipal Central Sub-branches; all Offices of China Banking and Insurance Regulatory Commission; all Offices of China Securities Regulatory Commission; all policy banks, large banks and joint-stock banks:
为全面贯彻落实党中央、国务院关于积极应对气候变化的一系列重大决策部署，更好发挥投融资对应对气候变化的支撑作用，对落实国家自主贡献目标的促进作用，对绿色低碳发展的助推作用，现提出如下意见。
To comprehensively implement a series of major decisions andarrangements of the CPC Central Committee and the State Council on actively addressing climate change, to better play the supporting role of investment and finance on climate change, to promote the implementation of the Nationally Determined Contribution (NDC), and to boost green and low-carbon development, the following guidance are formulated.
一、总体要求
1. General Requirements
（一）指导思想
1.1 Theoretical Guidance
以习近平新时代中国特色社会主义思想为指导，全面贯彻党的十九大和十九届二中、三中、四中全会精神，深入贯彻习近平生态文明思想和全国生态环境保护大会精神，坚持新发展理念，统筹推进“五位一体”总体布局和协调推进“四个全面”战略布局，坚定不移实施积极应对气候变化国家战略。以实现国家自主贡献目标和低碳发展目标为导向，以政策标准体系为支撑，以模式创新和地方实践为路径，大力推进应对气候变化投融资（以下简称气候投融资）发展，引导和撬动更多社会资金进入应对气候变化领域，进一步激发潜力、开拓市场，推动形成减缓和适应气候变化的能源结构、产业结构、生产方式和生活方式。
- Guided by Xi Jinping's thought on Socialism with Chinese Characteristics for a New Era, to comprehensively carry out the essence of the 19th Communist Party of China (CPC) National Congress, and the 2nd, 3rd and 4th Plenary Session of the 19th CPC National Congress, to thoroughly implement the thought of Xi Jinping's Ecological Civilization and his essence presented in the National Working Conference on Ecological and Environmental Protection, committing to the new development philosophy, to comprehensively and coordinately promote the five prolonged strategy[1], to promote coordinated implementation of the Four-Pronged Comprehensive Strategy[2], we shall actively implement the national climate change strategy.
- Guided by the NDC targets and low-carbon development goal, supported by the policy standard system, and led by development model innovation and local practice, we shall vigorously promote the development of investment and finance to address climate change (hereinafter referred to as climate investment and finance), guide and enable more social funds flowing into the climate change related fields, further stimulate potentials and open up markets; and promote the formation of energy structure, industrial structure, production modes and lifestyles to mitigate and adapt to climate change.
（二）基本原则
1.2 Basic Principles
坚持目标引领。紧扣国家自主贡献目标和低碳发展目标，促进投融资活动更好地为碳排放强度下降、碳排放达峰、提高非化石能源占比、增加森林蓄积量等目标、政策和行动服务。
Adhere to the objective driven principle. Closely follow the NDC targets and low-carbon development goals, promote the investment and finance activities to better serve above goals and relevant policies and actions, such as the carbon emission intensity reduction, the peak of carbon emissions, the increase of the non-fossil fuel share in energy use, and the increase of forest stock volume.
坚持市场导向。充分发挥市场在气候投融资中的决定性作用，更好发挥政府引导作用，有效发挥金融机构和企业在模式、机制、金融工具等方面的创新主体作用。
Adhere to the market oriented principle. Bring into full play the decisive role of the market in climate investment and finance; better play the guiding role of the government; and effectively play the role of financial institutions and enterprises in the innovation of models, mechanisms and financial instruments.
坚持分类施策。充分考虑地方实际情况，实施差异化的气候投融资发展路径和模式。积极营造有利于气候投融资发展的政策环境，推动形成可复制、可推广的气候投融资的先进经验和最佳实践。
Adhere to differentiated policies. Fully consider the local actual situation,and implement the differentiated development path and climate investment and finance mode. Create a policy environment conducive to the development of climate investmentand finance, and promote the formulation of a replicable and widely applicable advanced experience and best practice in climate investment and finance.
坚持开放合作。以开放促发展、以合作促协同，推动气候投融资积极融入“一带一路”建设，积极参与气候投融资国际标准的制订和修订，推动中国标准在境外投资建设中的应用。
Adhere to open and collaborative spirit. With the principle of open for development and cooperation for synergy, promote the integration of investment and finance into One Belt, One Road development, participate in the formulation and revision of international climate investment and finance related standards, and promote the application of Chinese standards in overseas investment and development.
（三）主要目标
1.3 Main Objectives
到2022年，营造有利于气候投融资发展的政策环境，气候投融资相关标准建设有序推进，气候投融资地方试点启动并初见成效，气候投融资专业研究机构不断壮大，对外合作务实深入，资金、人才、技术等各类要素资源向气候投融资领域初步聚集。
By 2022, we shall
- create a policy environment conducive to development of climate investment and finance; promote the construction of relevant standards for climate investment and finance in an orderly manner;
- launch the local pilots for climate investment and finance and achieve initial results; continuously expand the scale of professional research institutions for climate investment and finance;
- carry out further external cooperation pragmatically;
- and accumulate initial funds, professionals, technologies and other key elements and resources for climate investment and finance.
到2025年，促进应对气候变化政策与投资、金融、产业、能源和环境等各领域政策协同高效推进，气候投融资政策和标准体系逐步完善，基本形成气候投融资地方试点、综合示范、项目开发、机构响应、广泛参与的系统布局，引领构建具有国际影响力的气候投融资合作平台，投入应对气候变化领域的资金规模明显增加。
By 2025, we shall
- promote climate change policies and policies in investment, finance, industry, energy and environment in an efficient and coordinated way;
- gradually improve the climate investment and finance policies and standard system;
- form a systemic portfolio of local pilot projects, comprehensive demonstration projects, with capacity in project development, institutional responses and extensive institutional participation in climate investment and finance;
- guide the establishment of climate investment and finance cooperation platforms with international influence;
- and significantly raise the investment scale in climate change.
（四）定义和支持范围
1.4 Definitions and Supporting Scope
气候投融资是指为实现国家自主贡献目标和低碳发展目标，引导和促进更多资金投向应对气候变化领域的投资和融资活动，是绿色金融的重要组成部分。支持范围包括减缓和适应两个方面。
Climate investment and finance, refers to the investment and finance activities to guide and promote more funds to invest in climate change in order to achieve the NDC targets and low-carbon development goals. It is an important part of green finance. The supporting scope of climate investment and finance covers two aspects: climate mitigation and adaptation.
(1) 减缓气候变化。包括调整产业结构，积极发展战略性新兴产业；优化能源结构，大力发展非化石能源；开展碳捕集、利用与封存试点示范；控制工业、农业、废弃物处理等非能源活动温室气体排放；增加森林、草原及其他碳汇等。
(1) Climate Mitigation includes
- adjusting the industrial structure, actively developing the strategic emerging industries;
- optimizing the energy structure, and vigorously developing non-fossil fuel energy;
- conducting the pilot and demonstration of CCUS technologies;
- controlling GHG emissions from non-energy activities such as industry, agriculture and waste management;
- and increasing forest, grassland and other carbon sinks.
(2) 适应气候变化。包括提高农业、水资源、林业和生态系统、海洋、气象、防灾减灾救灾等重点领域适应能力；加强适应基础能力建设，加快基础设施建设、提高科技能力等。
(2) Climate Adaptation includes
- improving the adaptation capability on key sectors such as agriculture, water resources, forests and ecosystems, ocean, meteorology, comprehensive disaster prevention, mitigation and respondence;
- strengthening capacity building on adaptation, accelerating the construction of climate resilience infrastructure, and improving climate adaptation related science and technology capacity.
二、加快构建气候投融资政策体系
2. Accelerate Building the Climate Investment and Finance Policy System
（一）强化环境经济政策引导
2.1 Strengthen Environmental Economic Policy Guidance
推动形成积极应对气候变化的环境经济政策框架体系，充分发挥环境经济政策对于应对气候变化工作的引导作用。加快建立国家气候投融资项目库，挖掘高质量的低碳项目。推动建立低碳项目资金需求方和供给方的对接平台，加强低碳领域的产融合作。研究制定符合低碳发展要求的产品和服务需求标准指引，推动低碳采购和消费，不断培育市场和扩大需求。
- Promote the establishment of an environmental economic policy framework for addressing climate change, and fully utilize environmental economic policies to guide initiatives in addressing climate change.
- Accelerate the establishment of “National Climate Investment and Finance Project Pipeline” and identify high quality low-carbon projects.
- Promote the establishment of a platform to facilitate communication between funding supply and demand sides for low-carbon projects and strengthen the collaboration between industry and financial sectors in low-carbon areas.
- Research and design products and service guidance to meet the requirement for low-carbon development, promote low-carbon procurement and consumption, cultivating the market and expand the demand with constant effort.
（二）强化金融政策支持
2.2 Strengthen Financial Policy Support
完善金融监管政策，推动金融市场发展，支持和激励各类金融机构开发气候友好型的绿色金融产品。鼓励金融机构结合自身职能定位、发展战略、风险偏好等因素，在风险可控、商业可持续的前提下，对重大气候项目提供有效的金融支持。支持符合条件的气候友好型企业通过资本市场进行融资和再融资。鼓励通过市场化方式推动小微企业和社会公众参与应对气候变化行动。有效防范和化解气候投融资风险。
- Improve financial regulation policy, promote the development of financial market, support and incentivize various types of financial institutes to develop climate friendly green finance products.
- Encourage financial institutes, based on their own function,development strategies, risk perception and etc., to provide effective financial support for major climate friendly projects with controllable risk level and commercially viable business model.
- Support climate friendly corporates to finance or refinance through capital market.
- Encourage market base mechanism to promote small and medium enterprises and public participation of climate actions.
- Take precautions against and mitigate climate investment and finance risks.
（三）强化各类政策协同
2.3 Strengthen Policy Coordination
明确主管部门责权，完善部门协调机制，将气候变化因素纳入宏观和行业部门产业政策制定中，形成政策合力。加快推动气候投融资相关政策与实现国家应对气候变化和低碳发展中长期战略目标及国家自主贡献间的系统性响应，加强气候投融资与绿色金融的政策协调配合。
- Clearly define the responsibility and right of competent authorities, improve the cross-department coordination mechanism, and integrate climate change factors into macro and sectoral industry policy formulation, to generate coordinated policy synergy.
- Accelerate the promotion of climate investment and finance related policies, systemically responding to delivering the objectives in the national climate change and low-carbon medium to long-term strategy and NDC, strengthen the policy coordination between climate investment and finance and green finance.
三、逐步完善气候投融资标准体系
3. Gradually Improve the Climate Investment and Finance Standard System
（一）统筹推进标准体系建设
3.1 Pursue Coordinated Progress in Building the Standard System
充分发挥标准对气候投融资活动的预期引导和倒逼促进作用，加快构建需求引领、创新驱动、统筹协调、注重实效的气候投融资标准体系。气候投融资标准与绿色金融标准要协调一致，便利标准使用与推广。推动气候投融资标准国际化。
- Fully utilize the guidance impact and the compulsory advancing effect of standard on climate investment and finance activities, accelerate the establishment of a demand led, innovation driven, coordinated and practical climate investment and finance standard system.
- Climate investment and finance standard and green finance standard shall be consistent with coordinated effort, to ease usage and market promotion.
- Promote the internationalization of climate investment and finance standard.
（二）制订气候项目标准
3.2 Formulate Standard for Screening Climate Friendly Projects
以应对气候变化效益为衡量指标，与现有相关技术标准体系和《绿色产业指导目录（2019年版）》等相衔接，研究探索通过制订气候项目技术标准、发布重点支持气候项目目录等方式支持气候项目投融资。推动建立气候项目界定的第三方认证体系，鼓励对相关金融产品和服务开展第三方认证。
- With focus on climate benefits related metrics, linking with existing technology standard system and “Green Industry Guidance Category (2019)” and etc., we shall research and explore the formulation of issuance of climate friendly project technology standard, key climate friendly project category to promote climate investment and finance.
- Promote the establishment of a third party verification system for climate friendly projects and encourage the third party verification for climate finance related products and service.
（三）完善气候信息披露标准
3.3 Improve Climate Information Disclosure Standard
加快制订气候投融资项目、主体和资金的信息披露标准，推动建立企业公开承诺、信息依法公示、社会广泛监督的气候信息披露制度。明确气候投融资相关政策边界，推动气候投融资统计指标研究，鼓励建立气候投融资统计监测平台，集中管理和使用相关信息。
- Accelerate the formulation of information disclosure standard related to climate investment and finance projects, investors and funding, promote the establishment of a climate information disclosure mechanism with corporate’s public commitment, disclose climate information according to law and regulation, and encourage social supervision.
- Identify climate investment and finance related policy boundary, promote research on climate investment and finance related statistical metrics, encourage the establishment of climate investment and finance statistics and monitoring platform, centrally manage and apply relevant data.
（四）建立气候绩效评价标准
3.4 Establish Climate Performance Assessment Standard
鼓励信用评级机构将环境、社会和治理等因素纳入评级方法，以引导资本流向应对气候变化等可持续发展领域。鼓励对金融机构、企业和各地区的应对气候变化表现进行科学评价和社会监督。
- Encourage credit rating agencies to integrate environmental, social and governance (ESG) factors into the current credit rating method, to direct capital flow into addressing climate change and other sustainable development areas.
- Encourage scientific assessment and social supervision of climate performance of financial institutes, corporates and regional governments.
四、鼓励和引导民间投资与外资进入气候投融资领域
4. Encourage and Introduce Private Investment and Foreign Capital into Climate Investment and Finance
（一）激发社会资本的动力和活力
4.1 Stimulate the Power and Vitality of Private Capital
强化对撬动市场资金投向气候领域的引导机制和模式设计,支持在气候投融资中通过多种形式有效拉动和撬动社会资本，鼓励“政银担”“政银保”“银行贷款+风险保障补偿金”“税融通”等合作模式，依法建立损失分担、风险补偿、担保增信等机制，规范推进政府和社会资本合作（PPP）项目。
- Strengthen the guiding mechanism and model design for enabling market funds invested into climate field, support various mechanisms to effectively attract and enable private capital, encourage collaborative models of “government-bank-guarantee”, “government-bank-insurance”, “bank loan plus risk guarantee compensation”, “tax credit finance” and etc., establish mechanisms for loss sharing, risk compensation, guarantee and credit in according to the law, and standardize the promotion of public and private partnership (PPP) projects.
（二）充分发挥碳排放权交易机制的激励和约束作用
4.2 Give Full Play to the Simulative and Restrictive Function of Carbon Emission Trading Mechanism.
稳步推进碳排放权交易市场机制建设，不断完善碳资产的会计确认和计量，建立健全碳排放权交易市场风险管控机制，逐步扩大交易主体范围，适时增加符合交易规则的投资机构和个人参与碳排放权交易。在风险可控的前提下，支持机构及资本积极开发与碳排放权相关的金融产品和服务，有序探索运营碳期货等衍生产品和业务。探索设立以碳减排量为项目效益量化标准的市场化碳金融投资基金。鼓励企业和机构在投资活动中充分考量未来市场碳价格带来的影响。
- Promote the construction of carbon market mechanism, continuously improve the accounting recognition and measurement of carbon assets, gradually expand the scope of trading entities and increase the participation of investment institutions and individuals in carbon emissions trading in accordance with trading rules in due course.
- Under the premise of risk control, support institutions and capital to actively develop financial products and services related to carbon emission allowance, and to explore and operate derivatives and businesses such as carbon allowance futures in an orderly manner.
- Explore the establishment of market-oriented carbon investment fund with carbon emission reduction as a quantitative criterion in assessing project benefits.
（三）引进国际资金和境外投资者
4.3 Introduce International Funds and Foreign Investors
进一步加强与国际金融机构和外资企业在气候投融资领域的务实合作，积极借鉴国际良好实践和金融创新。支持境内符合条件的绿色金融资产跨境转让，支持离岸市场不断丰富人民币绿色金融产品及交易，不断促进气候投融资便利化。支持我国金融机构和企业到境外进行气候融资，积极探索通过主权担保为境外融资增信，支持建立人民币绿色海外投贷基金。支持和引导合格的境外机构投资者参与中国境内的气候投融资活动，鼓励境外机构到境内发行绿色金融债券，鼓励境外投资者更多投资持有境内人民币绿色金融资产，鼓励使用人民币作为相关活动的跨境结算货币。
- Further strengthen practical cooperation with international financial institutions and foreign enterprises in the field of climate investment and finance, and actively draw on good international practice and financial innovation.
- Support the cross-border transfer of eligible green financial assets in China, support the continuous enrichmentof RMB green financial products and transactions in the offshore market, and continuously promote climate investment and finance facilitation.
- Support China's financial institutions and enterprises to carry out climate finance abroad, actively explore the use of sovereign guarantees to increase foreign finance, support the establishment of RMB green overseas investment and loan funds.
- Support and guide Qualified Foreign Institutional Investors (QFII) to participate in climate investment and finance activities in China, encourage foreign institutions to issue greenfinancial bonds in China, encourage foreign investors to invest more in holding domestic RMB green financial assets, and encourage the use of RMB as the cross-border settlement currency for related activities.
五、引导和支持气候投融资地方实践
5. Guide and Support Local Practices in Climate Investment and Finance
（一）开展气候投融资地方试点
5.1 Initiate Climate Investment and Finance Local Pilots
按照国务院关于区域金融改革工作的部署，积极支持绿色金融区域试点工作。选择实施意愿强、基础条件较优、具有带动作用和典型性的地方，开展以投资政策指导、强化金融支持为重点的气候投融资试点。
- In accordance with the deployment of the State Council on regional financial reform, actively support the regional green finance pilots.
- Select regions with strong will to implement, with better basic conditions, with a potential driving force and being representative, to carry out climate investment and finance pilots with investment policy guidance and strengthened financial support.
（二）营造有利的地方政策环境
5.2 Create an Enabling Local Policy Environment.
鼓励地方加强财政投入支持，不断完善气候投融资配套政策。支持地方制定投资负面清单抑制高碳投资，创新激励约束机制推动企业减排，发挥碳排放标准预期引领和倒逼促进作用，指导各地做好气候项目的储备，进一步完善资金安排的联动机制，为利用多种渠道融资提供良好条件，带动低碳产业发展。
- Encourage local government to strengthen fiscal support and constantly improve climate investment and finance related supporting policies.
- Support local efforts to formulate negative screening lists of investment to curb high carbon emission investment, apply innovation incentives and restraint mechanisms for promoting enterprises to reduce emissions, play the guidance and advance compulsory role of carbon emission standards, guide all regions to prepare for establishing aclimate project pipeline, further improve the linkage mechanism of funding arrangements, provide good conditions for the use of multiple financing channels,to ultimately promote the development of low-carbon industries.
（三）鼓励地方开展模式和工具创新
5.3 Encourage Innovative Climate Investment and Finance Model and Instrument at Local Level
鼓励地方围绕应对气候变化工作目标和重点任务，结合本地实际，探索差异化的投融资模式、组织形式、服务方式和管理制度创新。鼓励银行业金融机构和保险公司设立特色支行（部门），或将气候投融资作为绿色支行（部门）的重要内容。鼓励地方建立区域性气候投融资产业促进中心。支持地方与国际金融机构和外资机构开展气候投融资合作。
- Local governments are encouraged to explore differentiated investment and financing models, organizational forms, service methods and innovative management system around the objectives and priorities of addressing climate change, in the light of local situation.
- Banking institutions and insurance companies are encouraged to set upspecial branches (departments) or to make climate investment and finance an important part of green branches (sectors).
- We shall encourage the establishment of regional climate investment and finance industry promotion centres.
- Support local, international financial institutions and foreign enterprises in initiating climate investment and finance cooperation.
六、深化气候投融资国际合作
6. Strengthen Climate Investment and Finance International Collaboration
积极推动双边和多边的气候投融资务实合作，在重点国家和地区开展第三方市场合作。鼓励金融机构支持“一带一路”和“南南合作”的低碳化建设，推动气候减缓和适应项目在境外落地。规范金融机构和企业在境外的投融资活动，推动其积极履行社会责任，有效防范和化解气候风险。积极开展气候投融资标准的研究和国际合作，推动中国标准在境外投资建设中的应用。
- Actively promote bilateral and multilateral collaboration in climate investment and finance and carry out third-party market cooperation in key countries and regions.
- Financial institutions are encouraged to support the low-carbon development of the Belt and Road and South-South cooperation and to promote the implementation of climate mitigation and adaptation projects abroad.
- Standardize the investment and finance activities of financial institutions and enterprises abroad, promote them to actively fulfill their social responsibilities, and effectively prevent and mitigate climate risks.
- Actively carry out research and international cooperation on climate investment and finance standards and promote the application of Chinese standards applied in overseas investment and construction.
七、强化组织实施
7. Intensify Organisation and Implementation
各地有关部门要高度重视气候投融资工作，加强沟通协调，形成工作合力。生态环境部会同发展改革委、人民银行、银保监会、证监会等部门建立工作协调机制，密切合作、协同推进气候投融资工作。有关部门要依据职责明确分工，进一步细化目标任务和政策措施，确保本意见确定的各项任务及时落地见效。
- Relevant departments shall attach great importance to climate investment and finance, strengthen communication and coordination, and form a joint effort.
- The Ministry of Ecology and Environment (MEE) will establish a coordination mechanism to work closely with the National Development and Reform Commission (NDRC), the People's Bank of China (PBOC), the China Banking and Insurance Regulatory Commission (CBIRC) and China Securities Regulatory Commission (CSRC) and other departments and jointly promote climate investment and finance.
- Relevant departments shall, in accordance with the clear division of responsibilities, further refine the target tasks and policy measures to ensure that the tasks identified in this guidance document are timely and effective.
生态环境部
国家发展和改革委员会
中国人民银行
中国银行保险监督管理委员会
中国证劵监督管理委员会
2020年10月20日
Ministry of Ecology and Environment
National Development and Reform Commission
People’s Bank of China
China Banking and Insurance Regulatory Commission
China Securities Regulatory Commission
20/Oct/2020
（此件社会公开）
(The documentis open to the public)
生态环境部办公厅2020年10月21日印发
Printed by the General Office, Ministry of Ecology and Environment
on 21/Oct/2020
Translated by Editorial of Climate Investment and Finance for Promoting Ecological Civilisation Construction Platform (CIFE)
Proof Read by Wang Li and Hasan Muslemani
[1] Economic, political, cultural, social, and ecological progress
[2] To comprehensively deepen reform, comprehensively advance rule of law, and comprehensively strictly govern the Party so as to provide strong impetus andguarantee for comprehensively building a moderately prosperous society
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