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The First National Local Green Financial Committee Platform Having Settled in Dalian Free Trade Area

Recently,Dalian Free Trade Area has taken the lead in introducing the first local greenfinancial committee platform nationwide to provide one-stop financial servicesto enterprises through innovative financial service means. With the help of thegovernmental policy support plus financial market support to drive the leadingindustry to develop in a green, low-carbon and sustainable manner, solve theproblem that it is difficult and expensive for enterprises to finance, theeconomy of Dalian Free Trade Area is developing in a green, low-carbon andhigh-quality manner.  

DalianGreen FinancialCommittee, whichwas founded jointly by Dalian Banking Associationwith Dalian Environmental Protection IndustrialAssociation, has 25 member unitsnow, including the branches of 20 major banksin Dalian and 5 insurancecompanies.It is designed to encourage green finance and the ecological andenvironmental industry toexchange and innovate, guide capitals to flow to theenvironmental protection industry to have different industries to attainsustainable development under the drive of green finance.

Simultaneously,the ecological and environmental protection enterprises and green developmentprojects over the city can, under the guide of the Municipal Ecological and EnvironmentalBureau and the People’s Bank, apply to enter into the library to dock with thegreen finance through the green enterprise project declaration platform ofDalian Environmental Protection Industrial Association. After the entry isallowed, the People’s Bank will release to the financial institutions over thecity and require the same to offer focal support in priority in respect ofgreen loans, financing in the capital market, green bond issuing, etc. By theend of Sept. 2021, a total of 70 enterprises in Jinpu New District and the FreeTrade Area have been chosen in the green project library, with the list ofthefirst green enterprises and green projects having been officiallyrecommended by China People’s Bank Dalian Center Sub-branch to the financialinstitutions over the city, 179 green enterprises, 70 green projects havingbeen officially incorporated in the green enterprise and green project libraryof Dalian for management, which involve multiple fields including equipmentmanufacturing, environmental protection facilities construction, pollutioncontrol, ecological resources development, wind energy and solar energyutilization facilities, marine pasture, green buildings, green transportation,etc. for a total financial demand of RMB 26.9 billion yuan.  

Sofar, the first sum of inclusive working capital loan free of mortgages withinthe framework of Dalian Green Finance Committee has been provided by Bank ofChina to Dalian Jiahui Logistics, a green supply chain enterprise and a councilmember of Dalian Environmental Protection Industrial Association,at an annualinterest rate of less than 4%. As of Aug. 2021, Dalian Green Finance Committee hadprovided marketized support to 15 enterprises needing funds for an amount ofRMB961 million yuan, of whichthe funding of RMB 560 million yuanfor 9 enterpriseshas entered into the approval process of the financial institutions, thefunding of RMB 310 million yuanfor 4 enterprises has been approvedsuccessfully.

        Thesettling of the green financial committee in Dalian has resulted in multiplenational, provincial and municipal innovations being pioneered

       1. The first national local green finance committee framework and the firstgreen financial platform for support docking initiated by the local industrialorganizations under the guide of the government have been established, a greenfinancial mode integrating both domestic and foreign funded financialinstitutions to serve enterprises jointly has been pioneered, and a green enterpriseand green project library has been established initially in Dalian; 

       2. A green credit information sharing system has been established for theindustrial organizations and financial institutions in Dalian for the firsttime. The financial institutions, through inquiring and sharing relevantenvironmental protection policies and regulations, industrial developmentstatus and market demand and supply situation, enterprise ecologicalenvironment penalty record, the applicability of the insurance forenvironmental pollution liability and insurance coverage situation, relevantcredit rating for ecological and environmental protection and faith-keepingsituation and other industrial information, can provide convenience and supportto relevant ecological and environmental protection enterprises and greendevelopment projects in respect of financing and crediting offering; 

       3. Innovate green financial tools, prevent environmental risks, establish amechanism to prevent and resolve the environmental risks of enterprises bypromoting the compulsory insurance for environmental pollution liability.Improve the credit rating of enterprises by means of insurance creditenhancement to lower the difficulty of enterprises in obtaining creditoffering;       

       4. Gradually incorporate the financial institutions in the fields ofsecurities, futures, trust, investment fund, exchange, financed lease,financing guarantee, assets management, etc. as the member units of the GreenFinance Committee. Guiding capitals to flow to the ecological and environmentalprotection industry and green development projects in the aspects of listing,supply chain finance, investment support for startup enterprises, non-bankloans,guarantee credit enhancement, etc. in an all-round manner.

Next,Dalian Free Trade Area will make full use of the first go and first try policyadvantage endowed by the state and the financial innovation function advantage,integrate domestic and international resources on all sides, combineorganically financial innovation with trade liberalization and facilitation, establisha green project library and a green credit information system, supportenterprises to carry out cross-border investment and financing activities, forgecomprehensivelya strategic highland for opening up and cooperation orienting toNortheast Asia, become an important growth pole leading the development of theold industrial base in Northeast China, and help Dalian achieve its carbon peakand carbon neutrality goals at an early date.