Two Departments Urge Financial Institutions to Formulate Green Finance Plans Supporting Green Factories, Clarifying Key Areas

Stock News12-12 08:54

On December 12, the Ministry of Industry and Information Technology (MIIT) and the People's Bank of China (PBoC) jointly issued a notice on leveraging green finance policies to support the construction of green factories.

The notice emphasized improving internal management mechanisms. Financial institutions are encouraged to develop tailored green finance plans for green factories, designate responsible departments, and identify priority areas for financial support. Streamlined approval processes and enhanced efficiency for key projects were also highlighted.

To incentivize green factory development, policies such as internal transfer pricing adjustments, accountability exemptions, and expedited loan approvals will be implemented. Financial innovation and service branding for green factories will be prioritized to elevate service quality.

**Key Support Areas** 1. **R&D and Industrialization**: Focus on breakthroughs in low-carbon technologies, critical equipment upgrades, and green industry innovations. 2. **Technological Upgrades**: Energy-saving retrofits, water conservation, waste recycling, clean fuel adoption, and digital-green integration projects. 3. **Zero-Carbon Factory Construction**: Support for green factories transitioning to zero-carbon operations.

**Strengthening Supply-Demand Coordination** - Provincial authorities will collect financing needs via the Industrial Energy Conservation and Green Development Platform (https://green.miit.gov.cn/), with quarterly submissions to MIIT. - PBoC will facilitate matchmaking between financial institutions and projects, ensuring market-driven, compliant financing. - Monitoring mechanisms will be established to track progress and address bottlenecks.

**Enhanced Financial Support Measures** 1. **Credit Solutions**: Customized loan terms, revolving credit, and mid-to-long-term financing options for green factories. 2. **Direct Financing**: Green and transition bonds to fund factory upgrades, with local governments encouraged to include eligible factories in bond issuance programs. 3. **Risk Mitigation**: Fiscal tools like interest subsidies and guarantee schemes to de-risk lending.

**Implementation & Collaboration** MIIT and PBoC branches will coordinate via platforms like the Credit Market Service System to pilot replicable green finance models. Regular policy updates and promotional campaigns will foster a supportive ecosystem.

*Contact Details* - MIIT: Wang Chengbo (Tel: 010-68205340) - PBoC: Chen Yang (Tel: 010-66199003)

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