Guangzhou’s green finance zone to ‘promote reform, innovation’

A new green finance pilot zone in Guangzhou will play a major role in Guangdong province’s environmental protection industry, according to a senior official.

Chen Yunxian, a member of the provincial government’s Party committee, said Guangdong has given top priority to reforming its finance system as well as developing new energy, artificial intelligence and environmentally friendly industries.

“The new green finance pilot zone in Guangzhou’s Huadu district will help promote financial reform and innovation,” Chen, a former vice-governor of the province, said at a news conference on Tuesday.

Huadu, home to Guangzhou Baiyun International Airport and the North Railway Station, is a major transportation hub for southern China and is an ideal site for green finance reform and innovation, he said.

Late last month, the central government gave a green light to five green finance pilot zones — in Zhejiang, Guangdong, Guizhou and Jiangxi provinces and the Xinjiang Uygur autonomous region. Each will be a designated area where financial institutions will be given incentives to support environmentally friendly industries, part of efforts to combat pollution.

The People’s Bank of China, the central bank, said it is working with local governments to develop the zones, which some analysts estimate will require more than 3 trillion yuan ($440 billion) a year in investment.

Chen Zhiying, vice-mayor of Guangzhou, said his government will continue to expand investment in financial reform and innovation.

He said the city, a major production base for new energy vehicles, has vowed to introduce more policies to boost development of green sectors such as energy-saving devices, biomedicine, AI and environmental protection equipment.

Huadu district has said it also plans to establish a 1 billion yuan fund to support the development of green finance and attract major projects and talent.