Original Title: Notice on the Announcement of Shandong Province’s Pilot Program for Financial Support of Green and Low-Carbon Transition
To the Development and Reform Commissions of all cities, the People’s Bank of China branches in all cities, and relevant financial institutions:

To thoroughly implement the spirit of the financial work conferences held by the Central Committee and the Provincial Party Committee, and to focus on resolving bottlenecks and pain points constraining financial support for green and low-carbon transformation, we aim to explore and introduce a series of original and pioneering reform measures in areas such as policy systems, organizational structures, standards frameworks, and product and service systems. The goal is to develop a set of practical, replicable, and scalable best practices and development models, leveraging pilot projects to create a demonstration and spillover effect. In June of this year, the Provincial Development and Reform Commission, in conjunction with the People’s Bank of China Shandong Branch, issuedthe “Pilot Program for Financial Support of Green and Low-Carbon Transition in Shandong Province.” Following procedures including voluntary applications, municipal recommendations, document reviews, and joint evaluations, 32 pilot projects for financial support of green and low-carbon transition have been selected. These include 4 municipal-level comprehensive regional pilots, 7 county (city, district)-level comprehensive regional pilots, and 21 enterprise transformation support pilots. The list is hereby announced (see attachment).

Local governments and enterprises selected for the Shandong Province Pilot Program for Financial Support of Green and Low-Carbon Transition are requested to refine and improve their implementation plans in accordance with the pilot tasks and objectives, and actively explore new pathways for financial support of green and low-carbon transition.Departments at all levels, including development and reform authorities and the People’s Bank of China, should strengthen overall coordination and provide guidance. They should organize financial institutions to expand credit support for pilot regions and enterprises, and encourage eligible localities to provide pilot projects with investment, fiscal support, preferential interest rates, and other necessary resources to help resolve conflicts and issues that arise during the pilot process. We will regularly organize summaries and evaluations of the progress and effectiveness of the pilot work, promptly identify advanced experiences and best practices, and foster a set of pilot outcomes characterized by strong innovation, reform, and significance.

Attachment: List of Shandong Province Pilot Projects for Financial Support of Green and Low-Carbon Transition and Pilot Directions

Shandong Provincial Development and Reform Commission People’s Bank of China, Shandong Branch

September 4, 2024

Attachment

List of Shandong Province Pilot Projects for Financial Support of Green and Low-Carbon Transition and Pilot Directions

I. Comprehensive Municipal-Level Regional Pilot Programs

(1) Binzhou City

Focusing on distinctive industries such as high-end aluminum, fine chemicals, and smart textiles, as well as the development needs of new energy, Binzhou will explore a transition financial service system that integrates coordinated support policies with targeted supply-side empowerment. This initiative aims to help the city establish strong technical and management advantages in the low-carbon development of traditional industries.

(2) Zibo City

Focusing on the urgent need for green and low-carbon transformation in older industrial cities characterized by coal-heavy energy structures and heavy industry-dominated industrial structures, this initiative will mobilize the combined efforts of government, banks, and enterprises to address challenges such as heavy emission reduction targets, significant transformation pressures, and numerous financing barriers. It aims to explore new approaches, pathways, and mechanisms for the development of green finance and transition finance.

(3) Weihai City

Using the establishment of the National Green Finance Reform and Innovation Pilot Zone as a lever, Weihai is promoting the effective integration of green finance and transition finance. It is exploring new models and experiences in green financial product innovation, comprehensive digital and intelligent green financial services, and the integrated development of green finance and the blue economy.

(4) Dongying City

Focusing on the low-carbon development needs of the crude oil processing and petroleum products manufacturing sectors, Dongying will explore the establishment of a diversified and comprehensive financial support system to facilitate the transformation of high-carbon industries. It will intensify efforts to develop transition finance products, promote a balanced approach combining direct and indirect financing, and further enhance the effectiveness of financial support for green, low-carbon, and high-quality development.

II. Comprehensive Regional Pilot Programs for Counties (Cities, Districts)

(1) Feicheng City

Focusing on key areas where financial support is needed for the green and low-carbon transformation of energy and industries, Feicheng City will explore new pathways and models for transition finance by building upon effective approaches and methods for the development of green finance.

(2) Chengyang District

Leveraging the foundational advantages of Qingdao’s relatively well-developed modern financial system and Chengyang’s advanced modern industries, actively utilize modern financial tools to build a diversified financing system. This will help advanced manufacturing take the lead in establishing distinctive models and characteristics in areas such as green and low-carbon technological innovation, international cooperation, and ESG reporting.

(3) Qihe County

Capitalizing on the overlapping strategic opportunities presented by the ecological protection and high-quality development of the Yellow River Basin, the coordinated development of the Beijing-Tianjin-Hebei region, and the integrated development of the Jinan metropolitan area, the county will actively mobilize high-quality financial resources and intensify efforts in organizational, product, and model innovation to establish a model for financial support of energy and industrial low-carbon transformation in the middle and lower reaches of the Yellow River.

(4) Lanshan District

Focusing on the green and low-carbon transformation needs of port-adjacent industries such as steel and chemicals, the district will explore innovations in building a financial service system adapted to modern industrial requirements; leveraging finance to strengthen and expand industrial clusters; coordinating port and shipping finance with green finance; and enhancing green direct financing.

(5) Laizhou City

Centering on the development needs of new energy and green mining, the district will pursue reform and innovation in financial organizations, financing models, service approaches, and management systems to explore effective pathways and methods for green finance development.

(6) Yihe New District

Focusing on the characteristics of green and low-carbon transformation models in industries such as high-end equipment, biomedicine, new materials, and the circular economy, we will guide financial institutions to provide specialized and targeted services, thereby forming a green finance cluster with significant influence in the southern Shandong region.

(7) Jiaxiang County

Focusing on the transformation and upgrading of energy and industrial structures, the county will concentrate on expanding the scale and scope of green enterprises and projects. It will actively meet the reasonable financial needs of key sectors such as new energy, industrial infrastructure revitalization, and green enterprises, and establish a green finance development framework with local characteristics, a comprehensive organizational system, and stable, secure operations.

III. Pilot Program for Financial Support of Enterprise Transformation

(1) Wanhua Chemical Group Co., Ltd.

Increase the transparency of ESG reporting and, with a focus on financial support for the “just transition” of enterprises, explore new financing packages to support the transformation and upgrading of the petrochemical industry.

(2) Shandong Hongqiao New Materials Co., Ltd.

Orderly advance corporate carbon emissions disclosure; innovate in areas such as the allocation of transition finance resources, product development, and transparency in information disclosure; and establish a new model for financial support of corporate transformation.

(3) Shandong Lubei Enterprise Group Corporation

Innovating methods and pathways for financial support in areas such as helping enterprises optimize their energy structures, enhance clean production standards, develop carbon sink resources, and engage in carbon trading.

(4) Sinograin Guoneng (Shandong) Power Energy Co., Ltd.

Exploring a series of green financial instruments, including equity, debt, insurance, and carbon financial derivatives, and developing new financing models for green financial services targeting new energy storage projects.

(5) Sinopec Qilu Branch

Focusing on energy structure optimization and efficient resource utilization, actively innovate in transition finance products and services, supporting policies, and institutional mechanisms to provide a comprehensive and well-coordinated green transition financial system for the green and low-carbon transformation of high-carbon enterprises.

(6) Pulian Chengshan (Shandong) Tire Co., Ltd.

Innovate “carbon footprint-linked” green financial products, implement a carbon labeling system, and establish new experiences and models for green finance to support green technological innovation in the tire industry.

(7) Asia Pacific Sino-Pulp (Shandong) Pulp and Paper Co., Ltd.

Innovating financial support pathways for technological innovation, product development, the circular economy, and energy conservation and emissions reduction in the papermaking sector, while exploring the application of green financial products in cross-border financing.

(8) Shandong Taigang Xinhai Stainless Steel Co., Ltd.

Focusing on financial support for enterprises’ green and low-carbon transformation, the company is exploring innovations in green financial product development, risk management, information disclosure, and cross-departmental collaboration.

(9) Shandong Jingbo Petrochemical Co., Ltd.

Focusing on supporting enterprises’ transition toward “reducing oil and increasing chemicals,” the company collaborates with relevant financial institutions, industry associations, and non-governmental organizations to build a green finance ecosystem.

(10) Shandong Lutai Holding Group Co., Ltd.

Focusing on supporting enterprises in enhancing the R&D and application of green and low-carbon technologies to reduce energy consumption and carbon emissions per unit of product, the company is collaborating with financial institutions to explore innovative green financial products and service solutions.

(11) Shandong Fulun Iron & Steel Co., Ltd.

Focusing on revolutionary technological innovation in the steel industry, the modernization and upgrading of traditional processes and equipment, and the optimization of energy and process structures, the company will expand green finance financing channels and models, and explore new pathways for green finance to support green technology innovation and development.

(12) Pingyin Shanshui Cement Co., Ltd.

Strengthen scientific and technological research in areas such as renewable energy, energy storage, and carbon sinks. Through innovations in financial institutions’ financing models, service approaches, and management systems, explore models for financial support to facilitate the green transformation of the cement industry.

(13) Qingdao Shun’an Thermal Power Co., Ltd.

Establishing a collaborative mechanism where the government provides policy support and financial guidance, banks offer financing support and service innovations, and enterprises actively advance green and low-carbon transformation, to create a model and set an example for green finance in promoting the green, low-carbon, and high-quality development of the heating industry.

(14) Shandong Qicheng Petrochemical Co., Ltd.

Explore green project evaluation and risk management models, develop targeted financial products, and encourage enterprises to increase investment in new green and low-carbon projects and technologies, thereby exploring and establishing a replicable and scalable financial development model for the crude oil processing and petroleum products manufacturing sectors.

(15) Sinopec (Dongying) Petrochemical Co., Ltd.

Addressing the pain points of the petrochemical industry’s transformation, the company will build a diversified financial service system to provide multi-channel, comprehensive financial support for enterprises’ green and low-carbon transitions. It will increase green financial support and explore pathways to promote enterprises’ green and low-carbon development.

(16) Huadian Laizhou Power Generation Co., Ltd.

Explore new models for green insurance to support enterprise transformation, establish a risk-sharing mechanism for green projects, and facilitate high-quality, green, and low-carbon development in the energy sector.

(17) Shandong Yuxin Holding Group Co., Ltd.

Explore the establishment of carbon accounts, innovate green investment and financing products, and strengthen the application of fintech to set an example and provide a model for the green and low-carbon development of the entire calcium carbonate and foundry industries.

(18) Changle Xinmai Paper Co., Ltd.

Explore channels and models such as green credit, green bonds, green funds, and green insurance to strengthen support for green technological innovation in the papermaking industry.

(19) Shandong Chenyang New Carbon Materials Co., Ltd.

Provide support for technological innovation in green and low-carbon enterprises through diversified financing channels, including risk mitigation and financing, to establish replicable and scalable best practices for the transformation and upgrading of the carbon industry.

(20) Shandong Refractory Materials Group Co., Ltd.

Explore new models and implementation methods for transition finance to support enterprises’ green technological innovation and just transition, and enhance enterprises’ capabilities in carbon accounting and environmental information disclosure.

(21) Taihe New Materials Group Co., Ltd.

Explore new green finance models focused on supporting enterprises in utilizing waste heat and pressure, implementing cascading energy use, developing new energy sources, recovering resources, and reducing pollution, carbon emissions, and other emissions.