Guidelines in place to support green finance

Recently released guidelines will significantly increase the degree of attention paid by China’s banking and insurance sectors to the work related to green finance, thus improving efforts to foster low-carbon and sustainable development, experts said.

The China Banking and Insurance Regulatory Commission recently announced that it has issued green finance guidelines, requiring banks and insurers to promote green finance at a strategic level, reduce the carbon intensity of their asset portfolios in a gradual and orderly manner, and eventually achieve carbon neutrality of asset portfolios.

Banks and insurers should increase support for the green, low-carbon and circular economy, prevent environmental, social and governance risks, include ESG requirements into their management processes and comprehensive risk management systems, strengthen ESG disclosures, and improve relevant policies, mechanisms and process management, the CBIRC said.

The regulator required banks and insurers to adjust and enhance their lending and investment policies to support energy saving, pollution and carbon emissions reduction, green growth, and disaster prevention in key sectors and fields, and promote the application of green and low-carbon technologies.

Banks and insurance companies need to take different measures in light of various situations, ensure the…