Commercial Banks’ Carbon Financial Business Of Our Country Development Research

Environmental issue has gradually drawn widespread attention while the issue like noxious smog in recent years has been speeding our national economic transition. Our 12 th five years program guideline presented that we would take the transformation of economic development mode as the mainline of future economic development. A government report proposed that, in the coming year, we should work hard on energy saving, emission reduction and environmental management. In the meantime, the proportion of strategic emerging industry should be increased, as improved the level. Therefore, it becomes more crucial to study carbon finance.Currently, international carbon trading market has been well developed, while that in China, at an early stage of development, lacks in sophisticate legal framework of carbon finance, relevant policy support, awareness of carbon finance from the community and professionals. Furthermore, banking institutions show deficient understanding about its potential commercial opportunity. If merchant bank, as the most important banking institution in our country, could extensively develop carbon financial service, our national carbon trading market and economy will experience rapid and sustainable development. Bank itself could also take advantage of it in terms of expanding the business channels, improving innovation, boosting profitability, enhancing society reputation, strengthening international cooperation as well as increasing international competitiveness. Merchant bank abroad has launched well-round carbon financial services including carbon trading and the relevant, retail business and asset management business. In comparison to it, our merchant bank has the following problems. It currently gets more involved in CDM-related financing service, mainly focuses on new energy industry and then has simple overall business level of carbon credit. In addition, carbon financing products provided by our merchant bank still stay at the beginning stage with narrow scope of business specific to individuals and lack of agency service.This paper introduces the development status quo of our country commercial bank low carbon financial business, also the key to societe generale as an example, introduces its low carbon financial business situation and the influence on the bank, serve as a reference for other domestic commercial Banks.Societe generale since its low carbon financial business, its growing asset scale, the return on capital has maintained a high level, non-performing loan ratio is lower than other joint-stock commercial Banks, to enhance innovation capacity, to become one of the most valuable, and its financing enterprises and society to bring the good benefit, realizes the win-win, for the economic and social sustainable development made a significant contribution.In allusion to insufficient attention to carbon finance paid by our merchant banks, short of professionals, high operating risks, lack of marketing environment to launch carbon financing trading and scarce innovation, a series of strategies are introduced by taking good use of national carbon trading market potential. These include taking carbon principle seriously, cultivating comprehensive professionals, actively carrying out carbon credits business, innovating all kinds of financing products and services, increasing merchant bank’s prevention level to carbon finance trading risks and promoting carbon financing pricing mechanisms.