Recently, Shanghai Clearing House (SHCH), in collaboration with Hubei Carbon Emission Exchange (HCEX) and Bank of Communications, successfully launched the intial online pledge financing businesses for Hubei carbon emission allowances. Following its connections with the Shanghai and Guangdong carbon markets, it marks another breakthrough for SHCH. It represents a further practical exploration of SHCH in leveraging its role as a financial market infrastructure to support national carbon peaking and carbon neutrality goals and boost carbon market development.
Since launching the online pledge information service for carbon emission allowances in the Guangdong carbon market in 2024, SHCH has continuously expanded service scenarios, helped real economy enterprises revitalize carbon assets through diversified channels, and built platforms and opportunities for commercial banks to innovate carbon finance businesses.
By launching the online pledge financing business for Hubei carbon emission allowances together with HCEX and Bank of Communications, the three party collaborative model of “financial market infrastructure + carbon exchange + bank” has been established. Building a brand new service ecosystem different from traditional models, it leverages resource advantages of all parties to enable rapid circulation of capital and carbon emission allowances. The business forms a fully online closed loop for carbon pledge financing, streamlining the whole online process of registration, valuation, pledging and loan disbursement to improve the convenience and accuracy of risk pricing and carbon financial services. Meanwhile, tailored to practical needs of the local Hubei carbon market, SHCH supports combined credit granting of “pledge + credit”, expanding business coverage and inclusiveness.
The successful launch of this project has effectively broadened green financing channels for small and medium sized enterprises. As a model carbon pledge product, it is of great significance in improving financing efficiency of emission controlled enterprises, developing benchmark carbon financial products, and providing experience for the national carbon market. Cumulative financing volume has reached RMB 30 million since launch.
Going forward, under the guidance of the People’s Bank of China, SHCH will continue to work with all stakeholders to improve quality and expand coverage of carbon pledge businesses, enrich and refine the carbon financial service system, empower the green and low carbon transformation of the real economy through financial innovation, contribute the “SHCH solution” to national carbon market development, inject strong momentum into green financial reform, and assume greater responsibilities and make more contributions to serving the national carbon peaking and carbon neutrality strategy and building a strong financial nation.
As one of China’s first pilot trading institutions for local carbon markets, HCEX is a specialized market platform filed with national competent authorities and approved by the Hubei Provincial Government. It serves as a key platform linking finance with the real economy and advancing regional green and low carbon transition. Since its establishment, it has maintained leading trading activity and scale, winning multiple government honors including the Hubei Provincial Government Environmental Protection Award and Hubei Reform Award. It has built the Yangtze River Ecological Rights and Interests Trading Platform, effectively supporting intra provincial allocation, cross provincial trading, value discovery and realization of various ecological and environmental rights and interests.
As one of SHCH’s first proprietary clearing members, general clearing members and strategic partners, Bank of Communications maintains close cooperation with SHCH in central counterparty clearing and bulk commodity spot clearing businesses, winning SHCH’s titles of Excellent Clearing Member and Excellent Settlement Member for consecutive years. It continues to innovate services in bulk commodity (including carbon emission) spot sector, strives to ease corporate financing difficulties, and provides comprehensive, precise and meticulous services for bulk commodity industry clients.
