Forwarded FromThePaper.cn

 On the afternoonof October 30, the 1^st Green Technology Bank Summit Forum was heldconcurrently with Pujiang Innovation Forum. Wu Yuanbin, Executive Deputy Headof the Green Technology Bank (GTB) Construction Leading Group and Director ofthe Department of S&T for Social Development of Ministry of Science andTechnology (MST) said in the forum that in order to implement the strategicdeployment of a market-oriented green technology innovation system, MST,National Development and Reform Commission as well as other relevantdepartments are studying, formulating and implementing related policies.

   “GTB provides green technologyachievements, financial support, talent support, market-oriented integratedoperation and comprehensive service system, opens up the channel oftransforming technological achievements, thus is an important exploration to forma market-oriented green technology innovation system,” said Wu Yuanbin.

 In September 2015, the 2030 Agenda forSustainable Development was adopted at the UN Sustainable Development Summit,which set the goals of global sustainable development for the next 15 years,with strengthening science & technology and innovation as an importantmeans ofimplementing the agenda. Chinawill work with other countries to promote the realization of the sustainabledevelopment goals, and GTB construction is one of the major initiatives forChina to execute the Agenda.

As the leading sponsor, MST works withShanghai to speed up GTB construction.In December 2017, the GTB headquarterssettled in Shanghai, “Administration Center of Green Technology Bank” was unveiled in Shanghai,Green Technology TransformationFund of RMB3.5 billion was created, and three platforms for green technologyinformation, transformation and financing respectively were established.

In December 2017, the first GTB leadinggroup meeting was held, which witnessed the establishment of rules, system andframework designed for GTB development. Up till now, GTB has been officiallyoperated for nearly a year.

Ma Chunlei, Deputy Secretary-general ofShanghai Municipal Government, said in his speech that the settlement of theGTB headquarters in Shanghai indicates the country's trust in the city, whichwill surely provide significant support for Shanghai to accelerate its progresstowards becoming a globally influential science & technology innovationcenter, and upgrade the city's energy level and core competitiveness.

According to Wu Yuanbin, preliminaryachievements have been made for constructing the three major platforms sincethe initiation of GTB. More than 7,000 technical achievements on theinformation platform have been officially launched online for externalservices; a stereoscopic network of green technology achievements transfer andtransformation has been created on the transformation platform, and long-termcooperative mechanism with existing platforms such as the Yangtze River DeltaTechnology Service Alliance has been launched, strategic cooperation agreementshave been signed with local governments of related places, such as Yunnan andTaiyuan,to provide green technology system solutions for key regions and majorneeds, and many green technologies, such as black and odorous water treatment,have been transferred and transformed; offshore wind power projects have beeninvested by the financial platform, and a coordination mechanism combined withapplication and demonstration of green technologies will be established andstrengthened.

Zhu Xian, Deputy Governor and COO of NDB,said that industrialization was the main driver of rapid global economic growthand improvement in living standards over the past 200 years; meanwhile, theproduction and consumption systems under traditional industries and models havealso led to fast resource depletion, ecological degradation and threat ofclimate change, which makes it no longer adapted to global sustainabledevelopment.

Green development is an inevitablerequirement for emerging market economies and developing countries in pursuitof sustainable development. According to Zhu Xian, emerging market economiesand developing countries are facing unique challenges and opportunities; theycould, by observing past experiences, avoid falling into resources andenvironmental traps that had troubled past industrial development, and try tocreate new economic models for sustainable development. Green development isoriented towards the problems of sustainable development and is an operationalstarting point to achieve sustainable development.

Zhu Xian said that via various governmentsubsidies for relevant projects, project guarantee PPP, and issuance of greenbonds, green financing can effectively mitigate bottleneck issues such asexcessive risk and maturity mismatch, reduce project financing cost, guide anddrive more social capital to flow into the green field, thus to become apowerful complement to the means of policy regulation and financial subsidies,realize the internalization of the externalities of green projects, facilitateproject financing, and achieve a better overall return in the whole society.

According to Zhu Xian, NDB has approved 27projects valued more than RMB6 billion, and a considerable part is concentratedin the field of green sustainable development.

Taking Shanghai Smart New Energy forexample, a loan of RMB 525 million was provided byNDB for its very first project carried out inChina, as a 100 MW distributed photovoltaic power station was established basedon the plants of Shanghai Lingang Industrial Zone, and upon exploring the bigdata management, the model of self-reliant power generation and consumption is createdto replace long-distance power transmission. “Its demonstrative effect canbetter guarantee the definition of green projects by all parties, and financialanalysis shows a relatively stable financial effect for this project,” said ZhuXian.

Meanwhile, NDB also provided a loan ofRMB2 billion for the offshore wind power project in Putian, Fujian Province,which has a total capacity of 250MW (1MW = 1000KW); upon completion, the powergeneration is equivalent to reducing CO₂ emissions by 900,000 tonsper year. At present, NDB is also preparing to provide similar loans to theoffshore wind power project in Yangjiang, Guangdong Province.

In 2016, NDB issued a total of RMB3billion of green bonds in the Chinese inter-bank bond market, with asubscription of 3.1 times. This is the first domestic bond ever issued by aninternational financial institution headquartered in Shanghai, and is also thefirst green bond issued by an international financial institution in thelargest emerging market of China.