Report: Financial system to make Guangzhou greener

A green financial system will be of great importance in driving low-carbon and sustainable industrial development in Guangzhou, Guangdong province, according to a development report.

The report, released on Tuesday in the city's Huadu district, reflected the achievements of the city's 11 districts in energy efficiency, economic and industrial restructuring, water quality, pollution control and urban green low-carbon initiatives.

Since Guangzhou was approved as a pilot city for green financial reform and innovation in 2017, Huadu district, located in the northern part of the city, has become an important example of green finance development, the report said.

The district has taken the lead for years in establishing a supporting incentive mechanism for green financing and industrial development, it said.

"Under the green finance policy system, public funds are needed to invest in green, low-carbon, sustainable fields in a market-oriented way," said Shen Hongtao, a researcher at the key laboratory of the human and natural life community at Jinan University.

As the green finance system incorporates environmental factors into business decision-making and management, public funds will not flow to industries that consume large amounts of energy or that generate a lot of pollution, Shen said, noting that "a green financial system is aimed at promoting high-quality industrial development".

To achieve low-carbon industrial development, Huadu district will focus on developing new-energy vehicles, photovoltaic modules, new-energy storage and hydrogen energy, with an industrial output of new-energy industries to reach 10 billion yuan ($1.43 billion) by 2025, the local government said.