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平安银行陈旭辉:积极践行ESG 绿色金融助力企业高质量发展

Chen Xuhui of Ping an Bank: actively implementing ESG Green Finance to promote the High-quality Development of Enterprises

投资者网 ·  May 16, 2022 02:37

GE Fanmei, the Investor Network

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ESG (environment, society and corporate governance) is becoming a hot topic of sustainable development in the public.

On May 12, the ESG online Forum Salon sponsored by thinking Finance & Investor Network and co-organized by Houyang Investment was successfully held. This salon focused on the theme of "exploring the future of ESG in China-new challenges, new opportunities, shared responsibility". Representatives of ESG rating agencies, listed companies, banks, consulting institutions, media and other ESG participants were invited to jointly discuss the experience of implementing ESG sustainable development.

At this live broadcast, Chen Xuhui, Assistant President of Green Finance Department of Ping an Bank, attended the meeting and delivered a keynote speech on the theme of "Green Finance promotes High-quality Development of Enterprises under carbon Neutralization Strategy". Share the opportunities of carbon neutralization and green finance, the trend of industrial transformation in the carbon neutral era, and Ping an Bank's green financial practice.

Chen Xuhui was the deputy director of the factoring professional committee office of the China Banking Association and a senior expert in supply chain finance, responsible for strategic planning and program design in the field of green trade financing and green supply chain finance. have a deep understanding and understanding of the green financial services real economy industry chain. It has made great achievements in fully tapping the core values of the supply chain and optimizing and upgrading the traditional factoring business, which has organized and promoted the sustainable innovative development of Ping an Bank's supply chain financial business.

Ping an Bank, as an excellent practitioner of ESG, has always regarded green finance as an industry development, and formulated a three-year plan for green finance from 2021 to 2023, proposing that the balance of green finance business should be greatly increased.

Carbon Neutralization and Green Financial opportunities

Under the global competition, the carbon emission right is the development right, and the energy structure will face tremendous adjustment. ESG plays a more and more important role in the development of enterprises, and carbon neutralization has become one of the important development directions of ESG.

According to the forecast of the BP Global Energy report, the proportion of renewable energy dominated by photovoltaic and wind power in China's energy consumption structure will increase from 4 per cent in 2020 to 55 per cent in 2050, the proportion of natural gas consumption will increase from 7 per cent to 12 per cent, and the share of coal consumption will decrease from 59 per cent to 4 per cent. Chen Xuhui believes that the change in energy consumption structure requires enterprises to actively implement the concept of ESG.

In order to achieve the double carbon goal, on the one hand, China will adjust the supply structure and build a new power system, on the other hand, it will promote the transformation of industries with high emissions, such as industry, transportation, construction and so on. According to Chen Xuhui, electric power accounts for the highest proportion of carbon emissions, accounting for 40%, industrial carbon emissions account for 20%, 30%, construction and transportation account for about 20% and 10%, respectively.

In view of the carbon emissions of key industries, Chen Xuhui proposed a specific implementation path to achieve carbon neutrality. He said that in order to further reduce the carbon emissions of electric power, develop clean power such as wind power, photovoltaic, hydropower, nuclear power and biomass power generation, and build supporting systems such as UHV, energy storage, smart grid and thermal power flexible transformation; in the industrial field, carbon emissions can be reduced by means of energy consumption reduction, pollution control, recycling and technical decarbonization. In the field of construction and transportation, the development of green buildings and green travel are all important measures of carbon integration.

To achieve the transformation and development of the dual-carbon target industry, it is inseparable from the support of finance, which also ushered in an opportunity for the development of green finance in China. The development of green finance in China started in 2016. After years of practice and typical demonstration of provincial green financial reform pilot areas, standards, products, incentives and regulatory systems have been initially formed. In 2021, China issued the "Green Financial Evaluation Program for Banking Financial institutions" to further promote the development of green finance through supporting tools for carbon emission reduction and refinancing for clean and efficient use of coal.

Chen Xuhui believes that the policy has high support for the development of green finance, large market space, and rapid development in green credit, green bonds, green investment and other areas.

Specifically, green credit is the main force in the current green financial development. the balance of green credit in local and foreign currencies in 2021 was 15.9 trillion yuan, an increase of 33 percent over the same period last year, 12.7 percent higher than the end of last year, 21.7 percent higher than the growth rate of various loans, and an increase of 3.86 trillion yuan for the whole year.

In terms of green bonds, 602.65 billion yuan of new green bonds were issued in 2021, an increase of 173% over the same period last year, with more issuers and varieties, carbon-neutral bonds showed outstanding performance, with 107.3 billion yuan issued; the development of green investment accelerated and the primary market paid more attention to it. Green theme investment in the secondary market was active, with eye-catching performance in photovoltaic, wind power, lithium batteries and other areas, with an increase of 80%. Chen Xuhui estimates that under the carbon peak and carbon neutralization strategy, the scale of green financial investment and financing in China will reach more than 100 trillion yuan.

The trend of Industrial Transformation in the era of carbon Neutralization

To achieve the dual-carbon goal, industrial transformation has gradually become the mainstream trend. Clean energy, such as photovoltaic, wind power, energy storage, industrial transformation, green building, green transportation and other areas are not only the specific implementation path to achieve carbon neutrality, but also the main track of industrial transformation. Under the background of ESG, how big is the development space of enterprise green transformation? What role can green finance play in supporting enterprise transformation? Chen Xuhui gave his views and views.

In the field of photovoltaic, Chen Xuhui believes that in the next five years, the technological change of the battery link will be the key to the reduction of photovoltaic cost, the upgrading of silicon wafer technology, the continuous optimization of silicon material and module technology, and the continuous reduction of photovoltaic power generation cost. it is estimated that the cost of photovoltaic power generation will be reduced by about 40% by 2030. Large base and county-wide distributed photovoltaic as the key promotion mode, the total installed scale of 350-450GW in the next five years, photovoltaic + energy storage has become the norm, and electrochemical energy storage has developed the fastest.

In Chen Xuhui's view, in the field of wind power, large-scale wind turbines are the most important way to reduce the cost of the industrial chain. The average power per unit of land wind power 2.7MW in 2020 is expected to continue to reduce from 2030 to 7-10MW, and the cost of wind power generation is expected to be reduced by more than 25% by 2030. The state will focus on promoting projects such as large bases, renovation of old wind farms and decentralized wind power, and install 250GW in the next five years. In the field of energy storage, electrochemical energy storage is the most potential path. at present, the energy storage cost of power plant configuration is on the high side, which is mainly driven by policy, and the investment space is 1668-200 billion yuan in the next five years.

The iron and steel industry is the focus of industrial transformation. The steel industry accounts for 15 per cent of carbon emissions, according to the data. Chen Xuhui predicts that this year, the iron and steel industry will be included in the national carbon market, and there is great pressure to reduce emissions. In the next ten years, iron and steel enterprises will reduce energy consumption, electric furnace steelmaking will bring about 510 billion investment demand, and technological decarbonization will further increase investment space.

In the field of green construction, low-carbon operation, efficient construction and green production have become the main transformation direction, and they are also the focus of green financial support and assistance. Chen Xuhui proposed three green transformation paths for the construction industry: the first is to develop green buildings or increase the application of renewable energy (such as BIPV) to reduce carbon emissions during building operation; the second is to develop prefabricated buildings to reduce waste and energy consumption during the construction process and shorten working hours; and the third is to support the use of green building materials.

In the field of green transportation, electrification and intelligence have become the development direction, improve public travel infrastructure, and maintain high investment in rail transit construction. Chen Xuhui said that rail transit is one of the seven major new infrastructure projects, and the current annual investment is about 600 billion yuan, and it is estimated that the average annual investment in the next five years will exceed 700 billion yuan.

Green Finance practice of Ping an Bank

2021 is the key year for the development of green finance in China. Centering on the goal of carbon peak and carbon neutralization, China has issued a "1x N" policy system, formed an institutional and basic policy framework, and clarified the important role of green finance from the policy level. As an important guarantee to achieve the goal of "double carbon", China's green finance ran out of the development "acceleration" in 2021.

As a national joint-stock commercial bank, Ping an Bank supports the high-quality development of enterprises through green finance and actively distributes the green financial industry. we will vigorously support major green industry projects in the areas of clean energy, energy conservation and environmental protection, clean production, eco-environmental infrastructure, green upgrading and green services.

Chen Xuhui said that Ping an Bank has put forward the goal of greatly increasing the balance of green finance business by formulating a three-year plan for green finance. In the first quarter of 2022, Ping an Bank's green credit balance reached 88.317 billion yuan, an increase of 27.7 percent over the end of last year, while the balance of green financial business reached 133.612 billion yuan, an increase of 17.5 percent over the end of last year.

Ping an Bank has thoroughly implemented the national carbon neutralization strategy, promoted green finance to a strategic level, set up a green finance office, and co-ordinated the construction of a green financial system. The bank subsidizes "internal transfer pricing (FTP)" to eligible green credit, approves the strategic quota of green credit, specifically supports green financial business, continues to increase support for green industries such as clean energy, energy conservation and environmental protection, and provides accurate services for various carbon emission reduction projects.

In terms of business, Ping an Bank focuses on the industry segment track, by giving full play to comprehensive financial technology and ecological advantages, innovative green financial products, and broaden the financing channels for low-carbon transformation of enterprises.

At the same time, Ping an Bank has also created three major business models: commercial bank + trading bank, commercial bank + investment bank, commercial bank + trading bank + complex financing, offensive green financial risk policy and risk management system.

According to Chen Xuhui, Ping an Bank also launched the "Seven-step Poetry Green into Gold" service campaign, issued operational guidelines for green credit recognition, and provided a full range of financial service support for Ping an Bank branches, so as to achieve service coverage for green customers.

As the source of supporting the sustainable development of the real economy, banks should assume more social responsibilities. Chen Xuhui said that Ping an Bank will continue to support the green and high-quality development of the real economy with the most suitable products and the highest quality services. (produced by thinking Finance) ■

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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