A national seminar themed on green finance reform and innovation is held in Huzhou, East China's Zhejiang province on Dec 10. [Photo/hz66.com]

Huzhou in East China's Zhejiang province has been leading the nation in green finance reform and innovation.  Green finance refers to structured financial activity that has been created to ensure a better environmental outcome.

As of the end of October, the balance of green loans in Huzhou stood at 154.5 billion yuan ($23.78 billion), compared to 45.5 billion at the end of 2016. The non-performing rate of green loans in the city is close to zero at 0.005 percent, according to official data.

To date, more than 20 banks have rolled out policies to support green finance development in Huzhou.

As a national pilot green finance zone, the city has established an integrated green finance service platform by using big data technology, which has helped to bridge green projects and financial institutions. Since its establishment, the platform has helped 20,000 small and micro enterprises obtain 210 billion yuan in loans.

Incentives have also been provided to mobilize local enterprises and financial agencies to issue labeled green bonds.

From 2017 to 2020, a total of 28 labeled green bonds with a total value of 16.47 billion yuan have been issued by State-owned enterprises and financial organs. Among them, six were green finance bonds, the most among the nine green finance pilot zones nationwide.

The Bank of Huzhou has been named "The Best Green Regional Bank of the Year" by Asiamoney magazine for two consecutive years.

On Dec 10, Huzhou reached partnerships with eight banks including Agricultural Development Bank of China, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank to further promote green finance development in the city.

The eight banks pledged to further streamline approval procedures for green loans and offer 1 trillion yuan in loans to bolster the city's green development. 

China plans to improve its green finance standards to support its carbon-neutrality objectives and make it easier for foreign investors to enter the green finance market, said Yi Gang, governor of the People's Bank of China, in his speech at the Singapore FinTech Festival.