The Status And Countermeasures Of China's Banking Industry Supporting Low-Carbon Economy Development

With the rapid development of economy,people'living standard rises gradually,but this progress is based on the excessive capture and destruction of the environment.In recent years,the environmental pollution is becoming more and more serious,due to a variety of other problems caused by environmental problems such as global warming,glacial melting phenomenon is endless.In 2003,the UK firstly proposed the concept of "low carbon economy",and spread rapidly in the world,becoming the new trend of economic development.My Government has also come to realize the importance of developing low carbon economy,actively introduce televant policies and called on the community to practice low carbon concept.Low carbon economy can not develop without the support of financial institutions,banks should take positive action to participate in the wave of low carbon economy,carry out social responsibility,and find new opportunities.At present,foreign banks especially the international mainstream banks has taken positive action to promote low carbon concept,innovate financial products and services,and has made some progress,but the domestic banking is only in the initial stage of development because of a variety of reasons.There is no uniform definition for the carbon finance in the world,so this paper define the concept of low carbon finance firstly and the banks'carbon finance business,the low carbon finance in the article refers to all financial activities to servise to limit greenhouse gas emissions.The scope of carbon finance business is very broad,it contains low carbon loans,financial products and services of carbon trading related,and the other carbon finance innovative products.The paper analyzed and compared the current situation of supporting the development of low carbon economy of domestic and foreign banks by material analysis and comparison analysis,and found the deficiencies of the domestic banks and the related reasons.Finally,I made a set of proposals and some new ideas of innovating the carbon financial products that combined with the experience of foreign banks and my own ideas.I wish to provide some useful reference for the domestic banks.The paper has six parts.The first part is the introduction.It mainly introduces the research background and significance,research methods,innovations and deficiencies.The second part is the summary that has five small parts.It introduces the issue of global warming and the international consensus reached,the meaning and origin of low carbon economy,the environmental finance theory and the meaning and origin of low carbon finance,and the Equator Principles.The third part is the importance of supporting the development of low carbon economy by the domestic banks.It is the need of achieving our sustainable development.It will improve the public image of the banks and competitiveness and the ability of preventing risks.Finally,it can provide the opportunity that open up new business areas and look for new profit growth point.The fourth part describes the situation that the domestic and foreign banks support the development of low carbon economy and our deficiencies,and analyses the reasons deeply.It contains three small parts.First,it describes the situations of the business ideas,the sustainable development department,low carbon loans,other carbon finance services and products about the foreign banks.Second,it describes the status that the domestic banks support the development of low carbon economy,it pointed out the inadequacies of our banks by comparing domestic and foreign banking presence,for example,we lack of the products and services of carbon finance,relevant experience, professional departments and talents.Finally,I analysed the reasons from the government and banks levels.The fifth part is the corresponding measures for the problems of our banking.The recommendations are divided into two parts.First,government should improve the system of environmental laws,regulations and policies,establish and improve the incentive mechanism and guidelines of low carbon credit,and strengthen the low carbon publicity. Second,our banking should take various measures to improve and innovate all aspects,such as trying to increase low carbon credit,innovate carbon financial products and services,establish the professional sustainable institutions,help build a unified platform for carbon trading,enhace their environmental awareness and improve carbon finance-related risk management mechanism.