Promote the reform and development of green finance! The "Regulations of Shanghai City on Promoting the Construction of an International Financial Center" were revised and approved

Recently, the 15th meeting of the Standing Committee of the 16th Shanghai City Municipal People's Congress revised and approved the "Regulations of Shanghai City on Promoting the Construction of an International Financial Center"(hereinafter referred to as the "Regulations"), which will come into effect on October 1, 2024.

This revision expands the "Regulations" from the original 39 articles with more than 3900 words to the current 65 articles with more than 10,000 words. The new "Regulations" consist of eight chapters, covering financial system construction, financial reform and opening up, financial services to the real economy, financial supervision coordination and risk prevention and resolution, financial talent environment construction, and financial business environment construction.

In terms of financial services to the real economy, the "Regulations" point out that we must increase financial support for the modern industrial system and do a good job in the "five major issues" of technology finance, green finance, inclusive finance, pension finance, and digital finance.

Among them, in promoting the development of green finance, the "Regulations" make clear: First, the Shanghai City People's Government promotes the reform and development of green finance, supports the enrichment of product and service systems in the fields of green finance and transformation finance, carries out the construction of standards such as group standards, and participates in the formulation of national standards or international standards. Support climate investment and financing and biodiversity finance, and coordinate the development of financial markets and carbon markets.

Secondly, the municipal local financial department should work with the municipal development and reform, ecological environment and other departments to build a green financial service platform. The central financial management department supports platform construction in Shanghai institutions and municipal economic informatization, transportation, housing and urban and rural construction management departments, and promotes the settlement of financial institutions and the warehousing of green projects.

Thirdly, the municipal ecological environment and local financial departments, together with the central financial management department's Shanghai institutions, implement an environmental pollution liability insurance system. Encourage insurance institutions to provide environmental risk reduction services to insured enterprises.

Finally, financial institutions are encouraged to carry out carbon accounting and environmental information disclosure, and credit rating agencies are encouraged to incorporate environmental, social and governance factors into the credit rating system; green financial certification agencies are cultivated, green financial certification agencies are encouraged to implement green financial certification, and green and low-carbon supply chains are established. Management service system; support financial infrastructure operating institutions and financial institutions to serve and participate in the carbon market in accordance with the law.

According to Yan Rui, deputy secretary-general of the Standing Committee of the Shanghai City Municipal People's Congress and director of the Legal Affairs Commission, at the current important stage when Shanghai's International Financial Center is moving towards a comprehensive improvement of its energy level, a comprehensive revision of the "Regulations" will promote a higher starting point. Deepen financial reform and opening up, serve the real economy, prevent and resolve financial risks, improve the energy level of Shanghai's international financial center construction in the joint development of the "Five Centers", and provide solid and powerful legal protection for Shanghai to better serve the construction of a financial power.