On July 24, the "carbon finance" jointly created by Shenzhen Guarantee Group Co., Ltd.(hereinafter referred to as Shendan Group), Shenzhen Ecological Environment Bureau, Nanshan District Financial Development Service Center, and Shenzhen Emissions Exchange (hereinafter referred to as the Exchange)"Shenzhen New Model-" Shenzhen Guarantee Group-Nanshan District-Small, Medium and Micro Enterprises No. 19 Asset Support Special Plan (Carbon Assets)"was officially listed on the Shenzhen Stock Exchange.
This is the first carbon asset securitization product to be listed nationwide. It is Shenzhen's study and implementation of the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China and the implementation of the "Decision of the Central Committee of the Communist Party of China on Further Comprehensively Deepening Reforms and Promoting Chinese-Style Modernization" and "Focus on Building Beautiful China, Accelerating the Comprehensive Green Transformation of Economic and Social Development", which also marks that Shenzhen has taken the lead in achieving a breakthrough in carbon asset securitization from "0" to "1".
"Carbon finance" leverages low-carbon development
Faced with the financing difficulties generally faced by enterprises in the green and low-carbon fields, the Shenzhen Municipal Bureau of Ecology and Environment has taken active actions and joined hands with Shenzhen Guarantee Group, Shenzhen Emissions Exchange, and Nanshan District Financial Development Service Center to innovatively launch carbon emission rights pledge loan debt asset securitization-ABS model.
In response to the launch of carbon asset securitization products for key emission units in the carbon market, Shenzhen City uses corporate carbon emission rights pledge loan claims as the basic assets, and provides financing support to enterprises by issuing market-circulating securities to help enterprises "green production" into assets. This is another new carbon financial service model created by the Shenzhen Municipal Bureau of Ecology and Environment and financial institutions since the launch of Shenzhen corporate carbon accounts and the implementation of "carbon reduction loans" green credit products, which continues to enrich the local practice of green finance in China.
The successfully issued carbon asset securitization project has provided 115 million yuan in financing support to 5 key emission enterprises in the carbon market and 1 carbon market custodian member in Nanshan District, promoting the optimization of resource allocation and promoting low-carbon transformation of enterprises. Play a significant demonstration effect.
Multiple measures to help implement carbon asset securitization projects
Green finance represented by carbon finance is an important support for the construction of a beautiful China. Shenzhen vigorously develops carbon finance, promoting the cumulative transaction volume of various trading varieties to exceed 100 million tons and the transaction volume to exceed 2.3 billion yuan. The carbon quota transfer rate ranks first in the country, providing a series of pioneering demonstration experiences for the development of carbon finance across the country.
The Shenzhen Municipal Bureau of Ecology and Environment will strengthen the innovation and promotion of carbon finance since 2022. In April 2023, the Shenzhen Municipal Bureau of Ecology and Environment organized and held a symposium on financial innovation needs research in Shenzhen's carbon market, inviting banks, insurance companies, securities companies, guarantee companies and other financial institutions to participate in exchanges to understand the intentions of financial institutions to promote carbon finance, discuss innovative ideas on carbon finance; guide the Exchange to connect with financial institutions such as Shendan Group on many occasions to innovate and design carbon asset securitization project plans.
In order to support the successful issuance of this carbon asset securitization project, Shenzhen Municipal Bureau of Ecology and Environment and Exchange actively helped Shendan Group connect with key emission units in Shenzhen. In August 2023, we will jointly hold a training and exchange meeting on carbon finance capacity building, inviting Shendan Group and enterprises in Nanshan District to jointly exchange carbon asset securitization business models. In November of the same year, at the Carbon Peak Carbon Neutralization Forum and the Shenzhen International Low Carbon City Carbon Trading Forum under the guidance of the Shenzhen Municipal Bureau of Ecology and Environment and hosted by the Exchange, Shendan Group and key emission units in Nanshan District represented Shenzhen Batian Ecological Engineering Co., Ltd. and Shenzhen Lide Communication Equipment Co., Ltd. successfully completed the signing of contracts for Shenzhen's first carbon asset securitization project.
Promote the implementation of policies and empower industrial development
Following the promulgation by Nanshan District of the "Measures for the Management of Special Funds for Promoting High-Quality Industrial Development in Nanshan District" and proposed district-level carbon finance support measures, the Shenzhen Municipal Bureau of Ecology and Environment has guided the Exchange to carry out investigations and research on special support measures for carbon financial products at the municipal level since 2023. In 2024, carbon finance support policies were successfully incorporated into the "Several Measures for Shenzhen to Comprehensively Strengthen Ecological Environmental Protection and Promote High-quality Economic Development (2024-2027)", expanding the scope of carbon finance support to the city-wide level. Provide 50% discount support to key emission units that carry out carbon emission financing business and complete carbon market performance on time, and provide 500,000 yuan in funding to financial institutions that carry out carbon finance innovation, promotion and application above a certain scale.
In the next step, the Shenzhen Municipal Bureau of Ecology and Environment will rely on innovation advantages, legislative advantages, and financial advantages to fully promote the deep integration of carbon markets and financial instruments, further improve the green and low-carbon development mechanism, continue to deepen the construction of Shenzhen's carbon market, and strengthen the carbon market's role in carbon pricing. The main role of the mechanism, strengthen the innovation and promotion and application of carbon finance, promote the construction of an economic policy system that supports the development of carbon finance, and build Shenzhen into a "carbon finance innovation city". Export the "Shenzhen experience" of green development to the world.