This English translation is for reference only. The Chinese version shall prevail in case of any inconsistencies.
Notice on Issuing the Measures for Supporting the Development of Green Finance in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin
All bureaus under the Executive Committee:
The Measures for Supporting the Development of Green Finance in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin has been approved upon deliberation at the session of the Executive Committee of the Cooperation Zone, and is hereby issued for your careful implementation. Should any issues arise during implementation, please promptly report the issues to the Financial Development Bureau of the Cooperation Zone.
Financial Development Bureau of Guangdong-Macao In-Depth Cooperation Zone in Hengqin
November 25, 2024
Normative Document No. 1/2024 of the Financial Development Bureau
Measures for Supporting the Development of Green Finance in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin
Article 1.
Purpose of the Measures
In order to implement the guiding principles of the Central Financial Work Conference and the policy guidelines set forth in the Guiding Opinions on Further Strengthening Financial Support for Green and Low-Carbon Development and the Opinions on Financial Support for the Development of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin(Normative Document No. 41/2023 of the People’s Bank of China) issued by the People’s Bank of China and other relevant authorities, these Measures are formulated in accordance with the actual circumstances of the Cooperation Zone to promote the coordinated development of green finance in Hengqin and Macao and to facilitate the construction of a pilot demonstration project for carbon neutrality in the Cooperation Zone.
Article 2.
Definitions
For the purposes of these Measures, the following definitions apply:
1. “Substantive operation” refers to enterprise operations that are conducted in compliance with the relevant provisions in theRules for Determining the Substantive Operation of Enterprises in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (Normative Document No. 2/2023 of the Executive Committee).
2. “Green loan” refers to loans issued by financial institutions in accordance with the green credit statistical standards established by the People’s Bank of China or the National Financial Regulatory Administration.
3. “Green lease” refers to financial leasing activities in which either the leased asset or the use of rental payments satisfies at least one of the following standards:
(1) The Guiding Catalog for the Green and Low-carbon Energy Transition of Industries (2024 edition), issued by the National Development and Reform Commission and other relevant authorities (subject to the most recent applicable standards, the same shall apply hereinafter);
(2) The Common Ground Taxonomy issued by the International Platform on Sustainable Finance (IPSF) for China-EU sustainable finance;
(3) The statistical standards for green lease business of financial leasing companies established by the National Financial Regulatory Administration.
4. “Green bonds” refers to bonds that satisfy at least one of the following standards:
(1) TheChina Green Bond Principles issued by the China Green Bond Standard Committee;
(2) The issuance requirements for green bonds stipulated by domestic securities exchanges, including the Shanghai Stock Exchange and the Shenzhen Stock Exchange;
(3) The Green Bond Principles (GBP) issued by the International Capital Market Association (ICMA);
(4) The Climate Bonds Standard issued by the Climate Bonds Initiative (CBI).
5. “Green and low-carbon transition projects” refers to financing projects related to environmental performance, conducted in accordance with the Sustainability-Linked Loan Principles and the Guidance on Sustainability-Linked Loan Principles, jointly issued by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA), and the Loan Syndications and Trading Association (LSTA). The term “green and low-carbon transition projects” also refers to projects that satisfy at least one of the following standards:
(1) The Guiding Catalog for the Green and Low-carbon Energy Transition of Industries (2024 edition);
(2) The Common Ground Taxonomy for China-EU sustainable finance;
(3) The Reference Standards for the Inclusion of Local Climate Investment and Financing Pilot Projects into the Local Climate and Financing Project Database issued by the Ministry of Ecology and Environment;
(4) The related standards for finance transition issued by financial authorities or industry associations of Guangdong Province or the People’s Republic of China.
6. “Green finance advisory institutions” refers to institutions that provide consulting services related to green finance, including strategic planning, policy research, business solutions, and financial innovation. Such institutions shall also meet the following criteria:
(1) Core members of the institution (including the legal representative or a senior executive who holds a valid employment contract with the institution) shall have participated as a keynote speakers or panelist in no fewer than five forums or seminars related to green finance, organized by international organizations, industry associations, academic groups, academic institutions, or government agencies;
(2) The institution shall have undertaken no fewer than two green finance-related consulting projects commissioned by government departments, or not fewer than five such projects commissioned by financial institutions.
7. “Green assessment and certification institutions” refers to institutions that conduct professional assessments and certifications for green and low-carbon transition projects or finance-related services. Such institutions shall also meet the following criteria:
(1) The institution shall either be registered with the Green Bond Standard Committee or be an Approved Verifier authorized by the Climate Bonds Initiative (CBI);
(2) The institution shall have successfully conducted assessments and certifications for no fewer than ten green bond projects.
8. “Green insurance” refers to insurance products and services that comply with the relevant standards set forth in the Notice of the General Office of the China Banking and Insurance Regulatory Commission on Issuing the Statistical System for Green Insurance Business and the Green Insurance Classification Guidelines (2023 edition) issued by the Insurance Association of China.
9. “Macao-funded enterprises” refers to enterprises in which the investor is either a resident of the Macao Special Administrative Region (hereinafter referred to as “Macao”) or a legal entity or non-legal professional service institution lawfully established in Macao, and in which such investor holds no less than 25% of the shares.
10. “Macao financial institutions” refers to financial institutions established with approval under Financial System Act (Law No. 13/2023) or other relevant specific regulations, and regulated by the Monetary Authority of Macao (AMCM).
11. “Office premises” refers to office spaces within the Cooperation Zone that are designated for office use (including cultural and creative industries, scientific and education and R&D, and high-tech industries) and have obtained a property ownership certificate (including ownership certification documents or real property title certificates).
12. Unless otherwise specified, all monetary amounts referred to in these Measures are in Renminbi (RMB). During the implementation of these Measures, any amounts denominated in foreign currencies shall be converted based on the central parity exchange rate of the Renminbi published by the China Foreign Exchange Trade System (CFETS) under the authorization of the People’s Bank of China on the date of the review of the support funds.
13. The terms “at least”, “no fewer than”, “maximum”, “not exceeding”, “no less than”, and similar expressions shall be interpreted as inclusive of the stated value.
Article 3.
Applicable Conditions
Banks, financial leasing companies, subsidiaries of financial leasing companies (including specialized subsidiaries and project companies, the same shall apply hereinafter), financing leasing companies, green finance intermediary service institutions, and other entities in the Cooperation Zone applying for the support measures under these Measures shall meet all of the following conditions:
1. The entity must pay taxes in accordance with the law and engage in substantive operations within the Cooperation Zone;
2. The entity must not have been included in the List of Enterprises with Abnormal Business Operations, the List of Enterprises with Serious Violations and Dishonesty, or the List of Dishonest Judgment Debtors within the past three years;
3. Banks, financial leasing companies, and financial leasing subsidiaries must be lawfully established with the approval of financial regulatory authorities. Financing leasing companies must be included in the regulatory list of financing leasing companies in Guangdong Province (excluding Shenzhen).
Macao financial institutions applying for the support measures under these Measures shall meet all of the following conditions:
1. The institution must be established with the approval of the Monetary Authority of Macao (AMCM);
2. The institution must not have any record of particularly serious violations as defined under the Financial System Act of Macao within the past three years.
Article 4.
Support for Specialized Green Finance Institutions
Banks, financial leasing companies, subsidiaries of financial leasing companies, and financing leasing companies in the Cooperation Zone are encouraged to establish specialized green finance institutions within the Cooperation Zone and serve as models to drive innovation in green finance.
Green finance specialized institutions that are recognized as eligible shall receive support as follows: RMB 2 million for institution with legal person status; RMB 1 million for bank branches; and RMB 500,000 for sub-branches of bank. Bank with legal person statue, branches, or Macao-funded enterprises established by Macao banking institutions in the Cooperation Zone shall be entitled to 120% of the applicable support standard. The above mentioned support funds will be disbursed over three-year period in installments of 40%, 30%, and 30%, respectively.
Institutions that have received the first installment of support funds shall not be eligible for the corresponding support in the subsequent years if they fail to meet the conditions stipulated in Article 5 of these Measures.
Article 5.
Conditions for Recognition as a Specialized Green Finance Institution
Specialized green finance institutions shall actively adopt a green and low-carbon development approach and systematically reduce the carbon intensity of their asset portfolios. In addition to meeting the requirements set forth in Article 3 of these Measures, specialized green finance institutions shall also satisfy all of the following conditions:
1. The headquarters or provincial-level branches have well-established mechanisms for institution management, policy frameworks, business process management, ESG or environmental information disclosure, specifically for green finance operations;
2. The company’s board of directors and shareholders’ meeting (for institute with legal person status), or the headquarters or provincial-level branches, have explicitly supported the establishment of specialized green finance institutions in the Cooperation Zone;
3. A green finance development plan shall have been formulated, including business development strategies, risk management mechanisms, and safeguarding measures;
4. A financial team aligned with green finance business development shall have been established, with the team leader possessing at least two years of experience in green finance-related business;
5. At the time of applying for support as a specialized green finance institution, the institution’s green loan balance or green leasing business balance shall meet at least one of the following requirements:
(1) As of the end of the previous year, the green loan balance or green leasing business balance shall be no less than RMB 300 million, accounting for at least 25% of the total balance, with a year-on-year growth rate of no less than 10%;
(2) As of the end of the previous year, the green loan balance or green leasing business balance shall be no less than RMB 5 billion, accounting for at least 25% of the total balance and maintaining positive year-on-year growth.
6. Starting from the year in which the first installment of support funds is received, the specialized green finance institution shall conduct ESG or environmental information disclosure annually by using one of the following methods:
(1) The specialized green finance institution shall independently publish an ESG or environmental information disclosure report;
(2) The headquarter or provincial-level branch of the specialized green finance institution shall disclose the relevant information of the applicant in the ESG or environmental information disclosure report.
Article 6.
Settlement Support for Green Finance Intermediary Service Institutions
Reputable and influential green finance advisory institutions, green assessment and certification institutions, and other green finance intermediary service institutions from both domestic and international markets will be supported to settle and develop within the Cooperation Zone. Eligible green finance intermediary service institutions, upon certification in the Cooperation Zone, may be granted a one-time settlement support fund of RMB 1 million. Subsidiaries established in the Cooperation Zone by a green finance intermediary service institution, in which the institution act as the sole largest shareholder, may be granted a one-time settlement support fund of RMB 500,000. No duplicate support shall not be granted to the parent company and its subsidiaries of the same green finance intermediary service institution. Macao-funded enterprises shall be entitled to 120% of the applicable support standard.
Article 7.
Eligibility Conditions for Settlement Support for Green Finance Intermediary Service Institutions
Green finance advisory institutions and their subsidiaries established in the Cooperation Zone that applies for settlement support shall satisfy at least one of the following conditions:
1. Since its establishment in the Cooperation Zone, the institution shall have organized or co-organized at least one offline green finance exchange event in the Cooperation Zone or Macao, with a minimum of 50 participants;
2. Since its establishment in the Cooperation Zone, the institution shall have provided green finance advisory services to clients in the Guangdong-Hong Kong-Macao Greater Bay Area, with total service fees exceeding RMB 1 million.
Green assessment and certification institutions and their subsidiaries established in the Cooperation Zone that apply for settlement support shall, since their establishment in the Cooperation Zone, have cumulatively undertaken no fewer than ten assessments and certifications for green and low-carbon transition projects or related financial originating from the Guangdong-Hong Kong-Macao Greater Bay Area .
Article 8.
Office Rental Subsidy
Specialized green finance institutions, green finance intermediary service Institutions, and the subsidiaries of finance intermediary service institutions in the Cooperation Zone that meet the recognition requirements stipulated in Articles 5 and 7 of these Measures may, starting from the year of recognition and based on the assessed rental value as determined by a third-party professional institution, be eligible for an office rental subsidy.
A subsidy of up to 80% of the assessed rental value, not exceeding RMB 80 per square meter per month, may be provided. The subsidized area for any single applicant shall not exceed 300 square meters, and the maximum subsidy period shall not exceed 24 months. If the assessed rental value exceeds the actual rental price, the subsidy shall be calculated as 80% of the actual rental price.
The office space subsidy shall be determined based on a per capita standard of 15 square meters, calculated in accordance with the number of employees who have signed labor contracts with the enterprise, pay social insurance or individual income tax within the Cooperation Zone, and physically perform their duties on-site.
Article 9.
Subsidy for Financing Costs of Green and Low-Carbon Transition Projects
Relevant institutions in the Cooperation Zone are encouraged to calculate and disclose environmental information, such as carbon emission reductions and carbon emissions of green and low-carbon transition projects, in accordance with applicable domestic and international standards. Financial institutions in the Cooperation Zone or Macao are encouraged to provide preferential financing support to green and low-carbon transition projects that demonstrate significant environmental benefits. Subsidies for financing costs may be provided to green and low-carbon transition projects located in the Cooperation Zone that have obtained financing support from financial institutions in the Cooperation Zone or Macao. The specific support measures are as follows:
1. For green and low-carbon transition projects that have obtained loans from banking institutions or finance companies of enterprise groups in the Cooperation Zone, an interest subsidy equal to 50% of the prevailing Loan Prime Rate (LPR) may be granted. If the loan interest rate (as specified in the loan agreement; the same shall apply hereinafter) is lower than the LPR, the interest subsidy shall be calculated at 50% of the actual loan interest rate. For green and low-carbon transition projects that have obtained loans from banking institutions in Macao, an interest subsidy equal to 50% of the loan interest rate shall be provided. The maximum annual interest subsidy amount for a single applicant shall not exceed RMB 2 million.
2. For green and low-carbon transition projects that have obtained financing leasing services through financial leasing companies, the subsidiaries of financial leasing companies, or financing leasing company in the Cooperation Zone, or through banking institutions and financing leasing companies in Macao, an annual rental subsidy of 2% of the financing amount under the financial leasing contract may be provided. The annual rental subsidy amount shall not exceed the actual financing costs incurred by the project in the respective year. The maximum annual rental subsidy amount for a single applicant shall not exceed RMB 2 million.
If the applicant is a Macao-invested enterprise or if the project complies with the the Common Ground Taxonomy for China-EU sustainable finance, the subsidy ratio and the maximum subsidy amount shall be set at 120% of the applicable support standards.
Applicants for support must meet the requirements of having no overdue interest payments, late repayments, or other default behaviors during the validity period of these Measures. If any interest or rental payments are overdue during the support period, no subsidies shall be provided for the overdue portion. For financing projects contingent upon environmental performance, if the environmental performance targets specified in the financing contract are not met, no interest or rental subsidies shall be granted.
Article 10.
Subsidies for Green Insurance Costs
For enterprises in the Cooperation Zone that purchase insurance products related to green building performance or ultra-low energy consumption building performance from insurance companies in the Cooperation Zone or Macao for insured subjects within the Cooperation Zone, a subsidy of 30% of the actual insurance costs incurred may be provided for the enterprises. The maximum annual subsidy for a single insured enterprise shall not exceed RMB 300,000. If the insured subject is a Macao-funded enterprise, the insurance premium subsidy rate and the maximum subsidy amount shall be set at 120% of the applicable support standards.
Article 11.
Subsidies for Green Assessment and Certification Costs
Regarding the business data of green financing mentioned in Article 5, the recognition of green and low-carbon transition projects in Article 9, and the recognition of green insurance business in Article 10 of these Measures, applicants shall provide a green assessment and certification report issued by a green bond assessment and certification institution registered with the Green Bond Standard Committee, a verification institution authorized by the Climate Bonds Initiative, or a subsidiary of the aforementioned institutions established in the Chinese mainland that is engaged in relevant business. A subsidy equal to 100% of the incurred expenses shall be provided for each green assessment and certification undertaken by the applicant. The maximum annual subsidy for a single applicant shall not exceed RMB 100,000.
Article 12.
Incentives for Green Finance Innovation or Outstanding Cases
Financial incentives will be provided to enterprises in the Cooperation Zone that are selected as green finance innovation or outstanding cases by any of the following organizations, as well as to Macao financial institutions whose financial service recipients or business activities are located in the Cooperation Zone:
1. Financial Society of Guangdong (FSGD);
2. Greater Bay Area Green Finance Alliance;
3. Other provincial-level or higher government departments, professional academic organizations, industry self-regulatory organizations, or industry associations.
A financial reward of RMB 250,000 will be granted for each selected case. If the same case involves multiple participating entities, one party may apply for the reward with the agreement of the relevant entities.
Any case that is selected in multiple awards or evaluation events shall only apply for the reward once.
Article 13.
Incentives for Green Finance Talents
Government departments, enterprises, and institutions in the Cooperation Zone are encouraged to organize employee training on ESG and green sustainable development. Employees who have signed labor contracts with enterprises with substantial operation in the Cooperation Zone and who have been paying the social security and personal income tax in the Cooperation Zone for more than six months (including financial service practitioners and personnel whose roles or responsibilities involve green and sustainable development) will be granted a one-time financial reward of RMB 4,000 upon obtaining any of the following certifications:
1. ESG Investing Certificate issued by the Chartered Financial Analyst (CFA) Institute;
2. Certified ESG Analyst or ESG Essentials Certificate issued by the European Federation of Financial Analysts Societies (EFFAS);
3. Environmental and Social Risk Analysis (ESRA) Training Certificate issued by the United Nations Environment Programme Finance Initiative (UNEP FI);
4. The Green, Social, Sustainability, and Sustainability-Linked (GSS+) Bonds Training Certificate issued by the Climate Bonds Initiative (CBI).
Article 14.
Application Procedures
The Financial Development Bureau of the Cooperation Zone will accept applications annually within a specific period of time (with the exact timeline to be announce in the official Application Notice). Applicants shall submit their applications within the designated timeframe; failure to do so will be considered a voluntary waiver of the subsidy. The procedures are as follows:
1. Online Application: Applicants shall log into the application system according to the instructions in the notification, complete the application form, and upload required supporting documents.
2. Acceptance: The Financial Development Bureau of the Cooperation Zone will conduct an initial review of the application materials and reject applicants who do not meet the eligibility requirements. Incomplete applications will be notified of missing items, which must be submitted within the specified time period; Applicants who are eligible and have complete application materials will be accepted for further review.
3. Review: The Financial Development Bureau will review the application materials.
4. Fund Determination: The Financial Development Bureau of the Cooperation Zone will determine the corresponding funding disbursement list based on the results of the review.
5. Public Announcement: The Financial Development Bureau publicly will announce the list of selected institutions and the corresponding funding amounts on the Cooperation Zone's official website for five working days.
6. Funds Disbursement: If no objections are raised during the public announcement period or if objections are found to be unsubstantiated upon investigation, the Financial Development Bureau of the Cooperation Zone will disburse the funds in accordance with the regulations.
Article 15.
Supervision and Administration
Applicants shall ensure the completeness, accuracy, authenticity, and legality of all of their application materials. Applicants who engage in fraudulent activities to obtain subsidies shall be permanently disqualified from applying for any support under these Measures. Any disbursed funds must be returned, along with interest calculated based on the prevailing Loan Prime Rate (LPR). Cases involving legal violations or criminal offenses will be referred to the competent authorities for legal action in accordance with the law.
Article 16.
Applicable Principles
Except as otherwise provided by laws and regulations, application for support under these Measures shall not affect the applicant’s eligibility for other supporting measures from the national, Guangdong provincial governments, or the Cooperation Zone authorities.
Unless otherwise specified, applicants eligible for both this policy and other similar support measures in the Cooperation Zone may choose the more favorable option under the principle of “prioritizing the higher standard without duplication”.
Article 17.
Right of Interpretation
The Financial Development Bureau of the Cooperation Zone reserves the right to interpret these Measures.
Article 18.
Effective Date and Validity Period
These Measures shall come into force on December 06, 2024, and remain in force until December 31, 2026.
Those eligible for support under these Measures from January 01, 2024, to December 31, 2024, may apply for support funds in 2025. Entities meeting the support criteria under these Measures in 2025 or 2026 may apply for support funds in the following year.
The relevant funds that are due but remain unpaid within the valid period of these Measures will continue to be paid until all payments are completed.