On March 2 and 3, China Clean Development Mechanism Fund Management Center (CDM Fund) held the CDM Fund Investment Seminar for Local Finance Bureaus 2017 in Yunnan, to discuss in what direction and with what approach to promote the diversified development of the CDM Fund investment based on the current work results. Jiao Xiaoping, Director General of CDM Fund, attended the seminar and presented the work report on the CDM Fund investment. Deputy Director General Mo Xiaolong and Deputy Director General Wang Ning hosted the meetings each day respectively. Zhao Xiaojing, Deputy Director General of Department of Finance of Yunnan Province, attended and gave a speech. The seminar was participated by representatives from 29 financial departments/bureaus at the levels of province, autonomous region and municipalities and 3 financial departments/bureaus at the level of city specifically designated in the state plan across the country.
Director General Jiao presented the work report with the theme of “Innovate Thinking and Explore Business Models to Vigorously Bring About a New Situation of the CDM Fund Investment” on behalf of the Management Center. He pointed out that CDM Fund, as a policy-related fund dedicated to addressing climate change at the state level, must thoroughly understand and implement the new development concepts, adjust to the relevant state policies, innovate the development patterns and develop more business tools in the context of the “New Normal” of the Chinese economy, so as to promote the public-private partnership and mobilize more social forces to move the green low-carbon development and the campaign to address climate change to a greater scale. He stressed that the work related to CDM Fund, especially the cooperation with local fiscal systems, should combine itself closely with the national and local activities on green and low-carbon development and grasp the policy focuses.
Director General Jiao looked back to the progress achieved in 2016 and explained that the Management Center along with the local fiscal systems, financial institutions and domestic enterprises had been exploring the development of structural investment tools, establishment of industrial funds, development of market-oriented guarantee mechanism and other work; the Management Center had also been promoting the combination of the CDM Fund investment and the public-private partnership as well as actively building an international fund management platform. He said, the CDM Fund investment was still in the initial stage of the market-oriented development, and CDM Fund should quicken its pace to create diverse work patterns and more products, and moreover, to turn the challenges into opportunities through mechanism innovation from 2017. He emphasized that the innovation of development patterns and the expansion of the market-oriented investment in relation to CDM Fund required joint efforts of and should be done in cooperation with the local financial departments in order to establish a market-oriented coordinating mechanism up and down the hierarchy that allowed the government to better play the guiding role.
At the seminar, the representatives from the Financial Departments of Shanxi Finance Bureau and Inner Mongolia Finance Bureau shared their experience in conducting the CDM Fund concessional loan service. Shanxi has gradually developed the practices that were suitable to its own situations in the past six years and has established a sound whole process management system of the CDM Fund concessional loans and made valuable exploration of the management system and mechanism innovation. Since the government of Inner Mongolia Autonomous Region and the Management Center signed the strategic cooperation agreement in August 2015, the CDM Fund concessional loans have been playing an active and supportive role in promoting the green low-carbon development in Inner Mongolia.
The seminar invited three financial experts to explain the market-oriented CDM Fund investment to the representatives to help expand their way of thinking. Xia Ping, Chairman of Bank of Jiangsu, introduced the green finance business in his bank and the idea of developing “Green and Innovative Structure Investment” products jointly with CDM Fund and Department of Finance of Jiangsu Province. Qiao Xiaobei gave an introduction of the green low-carbon infrastructure investment fund established by the CDM Fund Management Center and Bank of Communications and the fund management organization Zhong Jiao Da Asset Management Company. The initial investment into the fund was 10 billion RMB yuan, mainly from Bank of Communications. Zhong Jiao Da Asset Management Company will focus on the development of green low-carbon industries and investment in infrastructure projects. Chairman Yang Wenli of Chongqing Industry Investment Fund introduced the governance and management structures, operation characteristics, risk control of his fund, as well as how the fund of funds operated to deliver the governmental policy guidance to the market.
The representatives said that the work report demonstrated the reflection and exploration of the Management Center and hoped that the Management Center would actively develop the market-oriented CDM Fund investment, create more cooperation methods and products and further expand the cooperation with local financial departments. They offered comments and suggestions on a wide range of topics including the concession loan product design, loan rate, risk control, synergy with PPP projects, synergy with the national carbon market development and so on. They expected the concessional loan to grow from a traditional model into a support tool with distinctive advantages.
Director General Jiao presented the work report
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