On April 29, the 41st executive meeting of the People’s Government of Zhejiang Province approved the Huzhou Transition Finance Reform and Innovation Pilot Program, designating Huzhou as the unique provincial and national hub for transition finance reform and innovation. This milestone signifies another vital accomplishment in the City's green finance reform and innovation.
On April 29, the 41st executive meeting of the People’s Government of Zhejiang Province approved the Huzhou Transition Finance Reform and Innovation Pilot Program, designating Huzhou as the unique provincial and national hub for transition finance reform and innovation. This milestone signifies another vital accomplishment in the City's green finance reform and innovation.
Fig. Huzhou (Beijing) Conference on Transition Finance
As one of the nation's first pilot zones for green finance innovation and reform, since 2022, Huzhou has pioneered transition finance reform practice tailored to industrial realities. Focusing on crafting transition standards, allocating financial resources, and disclosing transition-related information, the City has precisely implemented strategies to chart an effective course for financial support in the transition of high-carbon high-efficiency industries towards low-carbon high-efficiency industries.
Fig. Changxing Rural Commercial Bank Supports Textile Enterprise Transitions
Following over two years of practical exploration, the City took the lead in unveiling five pioneering transition finance systems, including the Transition Finance Support Activity Catalogue of Huzhou City. Two Huzhou-initiated transition finance standards, including the Standard of Transition Loans Implement in Banking Industry, were recognized as provincial group standards, and the reform outcomes have been studied and emulated by Chongqing, Tianjin and Shanghai, among others. The City has rolled out 156 transition finance supporting projects, enterprises, and technologies in ten batches, garnering broad interest from financial institutions. Local banks have introduced innovative products like "Transition Loans" and "Carbon Efficiency Loans", which are tied to transition objectives and carbon efficiency performance, and issued a cumulative RMB 56.552 billion in carbon efficiency loans.
Fig. Five Standards Regarding Transition Finance in Huzhou
Huzhou's transition finance reform practices have been featured as a model case in the G20 Sustainable Finance Working Group Report, and showcased at domestic and international exchange and collaboration platforms, including the UK-China Green Finance Taskforce Meeting, the Green Finance Summit of the Greater Bay Area, and the Sino-German Dialogue on Transition Finance.
Fig. UK-China Green Finance Taskforce Meeting
Exploring transition finance reform and innovation to propel the green and low-carbon transition of traditional industries stands as a pivotal pilot mission for Huzhou. Moving forward, the City will capitalize on the new wave of large-scale equipment upgrades, closely aligning with the practical needs of low-carbon transition of traditional industries. Over the coming three years, the City will concentrate on key areas and links such as the upgrading and transformation of traditional industries, the low-carbon transition of high-carbon enterprises, and the transition towards green technology services. Through precise policies and targeted actions, the City will expedite the establishment of a market-oriented, specialized, and standardized transition finance service system. Leveraging the catalytic role of finance, the City aims to propel the low-carbon transition of traditional industries and advancements in green and low-carbon technologies, thereby furnishing the province with the “Huzhou Experience” in transition finance innovation and reform.
Source: The Financial Work Office of Huzhou Municipal People's Government
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