(Yicai) Nov. 8 -- Shanghai is actively building itself into an international green finance hub to promote economic growth and a green transition amid a global wave of eco-friendly and low-carbon economic development.

Shanghai has brought out a series of green and low-carbon policies, laying a solid foundation for the development of green finance and leading the city toward high-quality urban growth, Gu Beibei, deputy director of the Shanghai Jinsinan Institute of Finance, said yesterday at the third Green Finance Forum held in the Chinese megacity.

Green finance also plays a positive role in serving green industries and technological developments. Some 1,397 green bonds worth CNY1.66 trillion (USD232.3 billion) have been listed on Shanghai Stock Exchange, accounting for 35.3 percent of the volume and 30.5 percent of the value of domestic green bonds.

Shanghai’s businesses and financial institutions have issued 154 green bonds, or 3.9 percent of domestic total, raising CNY201.2 billion (USD28.2 billion), which represents 3.7 percent of the total.

In terms of diversification and innovation in green financial products, Shanghai Lingang Economic Development Group issued the nation's first carbon-neutral bond for affordable rental housing and the world’s first green dual-currency offshore bond in the free trade zone.

Shanghai has also completed more than 16 carbon quota pledge transactions, raising CNY41 million (USD5.7 million) with over 1.3 million tons of carbon quota pledged.

Green finance plays a critical and irreplaceable role in advancing green development, Xiao Wengao, chief of the city’s Putuo district, noted at the forum.

The essence of green finance is to drive a green economic transition, Wang Zhongwei, former secretary general of the State Council, said at the same event. While existing policies have achieved positive results, he noted that there is still scope for improvement in coverage and precision.

As environmental, social, and governance tools drive the revaluation of green assets, green finance will support the green economic transition in various ways, he added.

Editors: Xu Wei, Tom Litting