In recent years, Agricultural Bank of China Limited (ABC) has been actively advocating and practicing the strategy of low-carbon finance. It integrates adjusting and optimizing the credit structure with promoting enterprises to conserve energy and prevent environmental and social risks. By intensifying the financial innovation, it has launched multiple innovative green financial products, which has effectively supported the development of green industries and green renovation of traditional industries in China.
Tapping into the carbon finance market In order to help Chinese enterprises improve their ability to bargain in international carbon trading, ABC took the lead among domestic financial institutions to launch CDM advisory business. Since 2008, the number of CDM projects it has evaluated and served reached 22, covering 7 provinces and involving hydropower, wind power and biomass power. As a result, the annual emission has been reduced by 1.2 million tons, equivalent to the reduction by suspending all the taxis in Beijing off roads for one year. In 2012, the three CDM projects that ABC provided full-range services for were successfully registered at the United Nations, reducing the annual emission by 250,000 tons. Accordingly, ABC became the only large-sized state-owned commercial bank in China that could provide domestic enterprises with specialized investment banking service in carbon finance and has successful cases. (Note: Carbon emissions trading is a marketable financing mechanism for energy saving and emission reduction and an environmental compensation mechanism used by the international community to cope with climate change and control greenhouse gas emission. All the financial products and services launched by international institutions for carbon emission trading are referred to as carbon finance .)
At the end of 2012, ABC launched advisory services for emission reduction resale of registered CDM projects based on the existing CDM advisory business. By making use of its advantageous platform, channels and information, ABC provides follow-up emission trading advisory service for domestic enterprises engaged in emission reduction initiatives under registered CDM projects to improve their bargaining ability. Ever since the service was launched, it has provided over 10 enterprises with preliminary information and advisory services and 4 enterprises with official advisory services, resulting in an annual emission reduction of 170,000 tons.
