Analysis of the Current Situation and Develop ment Suggestions of Nanjing’s Green Finance

Liang Gang1,2, Wang Zheng1, Wu Meng3*, Li Zhixin3
1. Haikou University of Economics, Haikou, Hainan 571132, China

2. Post – doctoral Research Station, Institute of Industrial Economics, Chinese Academy of Social Sciences, Beijing
   100005, China
3. Guangxi University of Finance and Economics, Nanning, Guangxi 530001,
   China)

Abstract : Current ly, green f inance is becoming the front ier trend and core or ientat ion of the evolut ion of the f inancial industry. In recent years, Nanj ing has act ively promoted the standard izat ion construct ion in the f ie ld of green f inance, formu lated and imp lemented a number of support ive pol ic ies and support ing measures, and promoted f inancial inst itut ions to deepen green investment and f inancing pract ices through pol icy guidance, result ing in a cont inuous expans ion of the sca le of innovat ive f inancial products such as green credit and green bonds. However, it must be noted that the development of green f inance in Nanj ing st i ll faces multip le cha llenges: the soc ia l penetrat ion of the concept of green f inance is insufficient, the pol icy – guiding effect iveness at the government level has not been fully released, the interna l mot ivat ion of f inancial inst itut ions to participate in green f inance needs to be st imu lated, and the infrastructure and support ing services for the development of green f inance st i ll need to be improved. In response to the above s ituat ion, this paper puts forward suggest ions : Nanjing needs to accurately grasp the strateg ic opportunity per iod for the development of green f inance, cont inuous ly st imu late the endogenous mot ivat ion of f inancial services for green transformat ion through institutional innovat ion, str ive to bui ld a mult i – level and d ifferent iated green f inancial product supp ly system, focus on support ing the green transformat ion of traditional industr ies and the cult ivat ion of emerg ing green industr ies, and at the same t ime improve the support ing mechanisms such as pol icy coord inat ion, informat ion shar ing, and r isk shar ing to create an a ll – around ecolog ica l environment conducive to the high – qua l ity development of green f inance.
Keywords : Nanj ing ; Green f inance ; Development status

I. Economic Development of Nanjing
The GDP of Nanjing increased by 1,119.427 billion yuan from 2012 to 2024, demonstrating its growing contribution to the economic development of the Yangtze River Delta urban agglomeration. From the perspective of the three major industries, the proportion of the primary industry has been continuously declining; the output value of the secondary industry has been increasing, with its proportion fluctuating but generally showing a downward trend; the output value and proportion of the tertiary industry have both grown steadily,

exhibiting an overall upward trend. The tertiary industry has maintained a positive momentum

Data source: Nanjing Statistical Yearbook, Statistical Bulletin

Figure 1: Development of the Three Major Industries in Nanjing from 2012 to 2024

2. Leading Industries in Nanjing
   Nanjing is located at the intersection of China’s coastal open zone and the Yangtze River Basin development zone, and is an important regional central city in the core economic area of the Yangtze River Delta. At the end of 2017, Nanjing clearly incorporated the vision of “a famous innovative city and a beautiful ancient capital” into its new development vision, and officially launched the construction of a famous innovative city in early 2018. After continuously building itself into a “famous innovative city”, Nanjing has fostered a number of leading enterprises with internationally well – known brands and core competitiveness, as well as a number of modern enterprises and industrial clusters with prominent brand images, complete service platforms and high – quality levels. It aims to create a well – known national brand demonstration zone in the fields of leading industries, emerging industries and modern service industries. In particular, preferential policies are given to enterprises that have achieved remarkable results in technological innovation, management

innovation, quality improvement and brand building. By continuously enhancing the competitiveness of enterprises and industries, Nanjing is striving to build an innovation – driven city with comprehensive development of upstream and downstream industries.
(1) New – generation Electronic Information Industry
After years of development, Nanjing’s new – type electronic information industry has formed an industrial development system characterized by “large – scale development of liquid crystal display, industrial application of OLED display and lighting, and breakthroughs in core technologies of laser display” and a large – scale and well – known domestic industrial cluster. Representative enterprises include CEC Panda, Sharp, Jiangsu Ruizhong Data, Nanda Sufute, etc.

(2) Biomedical Industry
The biomedical industry in Nanjing continues to maintain a stable and progressive operation trend, with its scale constantly expanding. In 2020, the number of enterprises in Nanjing’s medical and health industry reached more than 28,362. Representative enterprises include Simcere Pharmaceutical, Jiangsu Aosaikang Pharmaceutical, Nanjing Chia Tai Tianqing, Nanjing Luye Sike Pharmaceutical, Jinling Pharmaceutical, etc. Meanwhile, Nanjing has also gathered a group of high – quality innovative entities in the biomedical industry, including 2,173 biomedical production and R & D enterprises, 1,032 high – tech enterprises,

8 top 100 pharmaceutical industrial enterprises, and 19 listed companies. Under Nanjing’s key planning, the biomedical industry has become one of the key pillar industries in Nanjing.

(3) Software and Information Service Industry
Nanjing is the first “China Software City” in the country. As of 2021, the number of employees in the software industry exceeded 800,000, the number of software – related enterprises exceeded 5,000, and the number of software – related listed enterprises exceeded 110. Representative enterprises include Guorui Group, NARI Group, Sanbao Technology, Lianchuang Technology, Nanda Sufute, etc. Most universities in Nanjing offer computer, software engineering and related majors. The School of Software Engineering of Nanjing University and the School of Software Engineering of Southeast University are national demonstration software schools. There are multiple software and information service industrial parks in Nanjing, which provide essential support for the construction of Nanjing’s digital economy industry.

(4) Green and Intelligent Automobile Industry
Nanjing focuses on the future development directions of vehicle lightweighting, greening and intelligentization, accelerates the transformation of traditional automobiles to intelligent connected vehicles, promotes the development of new – energy vehicles and their supporting industries, and aims to increase revenue. With the implementation of large new – energy vehicle

projects such as FMC in Nanjing Economic and Technological Development Zone and Jingneng in Jiangning Binjiang, Nanjing’s traditional automobile industry is transforming to intelligent connected vehicles, expanding the supporting industries for new – energy passenger cars, commercial vehicles, power batteries, high – power drive motors, etc. In 2020, the revenue of the green and intelligent automobile industry exceeded 300 billion yuan.

(5) High – end Intelligent Equipment Industry
Smart grid and rail transit are the two leading industries in Nanjing’s high – end intelligent equipment field. Among them, the output value of the smart grid accounts for 50% of the national total, and the rail transit industry ranks third in the country. Nanjing takes advantage of its well – developed software industry and combines it with the equipment manufacturing industry. Relying on the development foundation of intelligent equipment industries such as intelligent manufacturing, smart grid, and rail transit, it focuses on promoting the cluster development of industrial robots and aerospace equipment industries. In 2020, the operating income exceeded 400 billion yuan.

(6) Financial and Science – and – Technology Service Industry
Nanjing focuses on developing science – and – technology services, intellectual property services, business incubation and other science – and – technology service industries with Nanjing

characteristics. It accelerates the construction of a financial center in the Pan – Yangtze River Delta region centered on “both sides of the Yangtze River” and promotes the service and support of science and technology for finance. Based on Nanjing’s position as a sub – center city in the Yangtze River Delta and its advantages as a city with strong scientific and educational resources, it promotes the financial and science – and – technology service industry to grow into Nanjing’s “characteristic service industry”.

III. The Development Status of Green Finance in Nanjing
In recent years, aiming at “setting an example in ecological priority and green development”, Nanjing, in combination with its own resource endowment and development foundation, has actively constructed a green finance policy system. Through financial instruments such as green credit and green bonds, it guides funds to flow into environmental protection projects such as low – carbon and clean energy [1], realizes the allocation of financial resources to green and clean industries [2], and guides enterprises’ green transformation
[3] and the optimization of the economic structure
[4]. It has also achieved initial results in enhancing the green finance supply capacity of financial institutions, activating the enthusiasm of various participants in the green finance market, and building green finance demonstration projects and platforms. The specific manifestations are as follows in three aspects:

(1) Improve the policy framework to promote the development of green industries
In recent years, Nanjing has actively responded to the strategic arrangements of the central government and Jiangsu Province regarding the development of green finance. It has successively introduced a series of supportive policies to promote the construction of the green finance system, covering areas such as financial reform, the construction of regional financial industries, and equity investment. Under the framework of the integrated development of the Yangtze River Delta, Nanjing has also introduced a number of differentiated green finance measures (see Table 2) to assist in the transformation and upgrading of the green finance industrial structure, promote the integrated development of new green finance, and actively explore the construction of a new high – ground for green development in the new era. At the same time, Nanjing has also introduced corresponding fiscal support policies and supporting safeguard measures, laying a solid policy foundation for the development of green finance in the city. In Table 2, Nanjing’s case demonstrates a hierarchical and systematic development strategy model, reflecting an evolutionary process from the micro to the macro and from the simple to the complex. It has made significant progress in multiple aspects, including building the basic institutional framework for green finance, developing the financial institution system, innovating green finance products and services, and constructing incentive and restraint

mechanisms, depicting a comprehensive blueprint for provincial – level green finance development. According to the “Report on the Green Innovation and Development Index of the Yangtze River Economic Belt (2021)”, Nanjing has ranked second in the green innovation and development index for three consecutive years. This shows that Nanjing has in – depth exploration of its local economic and financial system, actively adapted to green finance policy support, and achieved the development and transformation of the green finance system, providing regional – characteristic and referable policy reform experience for China’s green finance development.
Table 2: Some Green Finance Development Measures in Nanjing from 2018 to 2024

(2) Enrich financial products and stimulate the vitality of the green financial product market
Currently, green financial products and services constitute the key elements for the development of green finance. Nanjing boasts a rich variety of green financial products, mainly including green credit and green bonds. Green credit and green bonds not only expand the channels for capital

investment but also play a positive role in promoting the rapid growth of the green industry.

1. 1、绿色信贷
   The development of bank credit serves as the cornerstone of green credit. [5] In recent years, the scale of green credit products in Nanjing has grown rapidly, playing an important role in facilitating the achievement of the “dual carbon” goals. Take Nanjing Bank, the first domestic bank to establish a green finance department and carry out green finance business, as an example. Its green credit increased from 44.754 billion yuan in 2019 to 132.956 billion yuan by the end of 2022. The bank has also launched a series of distinctive green finance products to provide comprehensive services for the green industry. By the end of 2022, the number of Nanjing Bank’s green customers reached 2,400, representing an increase of 51.13% compared to the beginning of 2022. In addition, branches of China Guangfa Bank, Hengfeng Bank, and China Construction Bank in Nanjing have all carried out pilot projects for green credit. The continuously expanding scale of green credit has contributed to the improvement of Nanjing’s ecological environment, empowering sustainable development and climate – change response.
2. 2、绿色债券。
   Green bonds are financial instruments specifically used to finance eligible green projects or acquire such projects. As a key driving force for green projects, these bonds are more transparent and open at the technical level. [6] In recent years, the green bond market in Nanjing has continued to

expand. In 2020, Nanjing Securities assisted in the development of Nanjing’s rail transit by issuing the first high – quality enterprise bonds in the rail transit industry and the first green high – quality enterprise bonds, with a total of 5 billion yuan for the two phases, empowering the construction of Nanjing’s transportation infrastructure. From 2021 to 2022, Nanjing Bank issued three phases of green bonds with a total scale of 10 billion yuan (see Table 3). Against this backdrop, various emerging green financial industries have developed, and traditional enterprises have achieved clean energy use, ecological production, energy – efficient office operations, and green facilities in the construction of the green finance system. This has significantly reduced the financing constraints faced by green R & D enterprises, promoting the innovation and progress of green technologies. Meanwhile, with the continuous improvement of Nanjing’s green securities system, the criteria for identifying green R & D projects have become clearer. The improvement of the green bond market can significantly alleviate the information asymmetry between investors and enterprises, reduce the financing constraints of green R & D enterprises, promote the progress of green technologies, and drive the transformation and upgrading of the city’s industrial structure. [7]
Table 3: Issuance of Green Bonds by Nanjing Bank from 2021 to 2022

(3) Implement reform experiments to promote the upgrading of the industrial structure
In November 2023, Nanjing Jiangbei New Area launched the construction of the first batch of provincial-level green finance innovation and reform pilot zones. This pilot project of green finance innovation and reform aims to promote emerging industries to take the leading position, seize important opportunities in green finance development, and establish a green development mechanism to promote the iterative upgrading of industries in key areas by adopting measures such as differentiated credit interest rates and differentiated credit target subjects. An important way to promote high – quality urban economic development is to promote the optimization and upgrading of the industrial structure. [8] Research shows that green finance plays a key role in this process, providing strong support for the development of emerging industries such as new materials, new energy, and new services. [9] When these emerging industries gradually become the leading industries, the industrial structure of the region is in an advanced stage. [10] For example, Company J, a subsidiary of Nanjing Securities, actively responded to the requirements of carbon peaking and carbon neutrality. In 2020, it invested in Company C in Jiangsu, empowered the promotion of low – carbon and energy – saving products, helped Company C in Jiangsu further expand the application of permanent magnet technology, and served the work of carbon peaking and carbon neutrality. In addition, Company C

actively responded to the call for green office, penetrated the concept of green development into its daily business activities, strictly implemented energy – saving and consumption – reduction regulations, called on the company to achieve paperless office, and promoted low – carbon development by building a new – generation digital office platform.

IV. Difficulties in Nanjing’s development
(1) Insufficient vitality of the private economy
First, affected by the impact of the pandemic on some sectors of the private economy, the number of private enterprises decreased. According to the statistics of the Market Supervision and Administration Bureau, in 2024, a total of 201,700 new business entities were registered throughout the year, a year – on – year decrease of 17.66% compared with the previous year.
(2) Imperfect industrial energy level and industrial synergy in the Nanjing Metropolitan Area
Currently, there is still a significant gap between the industrial energy level and industrial synergy in the Nanjing Metropolitan Area and those in the metropolitan areas of developed countries or regions. In 2024, the GDP of Nanjing was 1.85 trillion yuan, lower than that of other regional central cities such as Suzhou, Hangzhou, Chengdu, and Wuhan. Its spill – over effect and driving force on the industrial development of surrounding cities are relatively weak. The Nanjing Metropolitan Area spans two provinces, Jiangsu and Anhui. Industrial cooperation requires coordination at multiple

levels such as provinces, cities, and counties, and the cooperation is quite difficult. A cooperation mechanism for cost – sharing and benefit – sharing and a regular coordination and negotiation mechanism have not been fully established.
(3) Imperfect development plan for green finance The green finance development strategy in Nanjing currently remains at the level of departmental cooperation. The policy goal is to increase the supply system of multi – level and diversified green finance products. The overall green finance development lacks a systematic and complete provincial – level strategic plan to lead it and fails to reach the strategic height of “one – game – of – chess” across the province. In addition, the green economy based on green enterprises (projects) usually requires large capital investment, has a long operation cycle, and generally has a low return rate. To leverage social capital, the government needs to allocate fiscal funds and implement policies such as tax incentives.
(4) Insufficient innovation and expansion of green
finance
This is mainly manifested in the need to strengthen inter – departmental cooperation: the lack of market mechanisms restricts the development of green credit business; the lack of price evaluation standards and market trading mechanisms for energy use rights, carbon emission rights, pollution discharge rights, and energy – saving project income rights, and the lack of further guidance for banks; insufficient innovation and promotion of green finance products. The existing financing

channels mainly rely on bank green credit, green bonds, and the compulsory liability insurance system for environmental pollution. The innovation and expansion of financial instruments need to be strengthened.
(5) Imperfect green finance market system
This is mainly manifested in the single existing green finance service providers. Compared with the participation of banks, other financial institutions such as securities, insurance, and funds participate less. The joint innovation mechanism among financial entities such as banks, securities, insurance, and funds is not smooth. The supply of green finance products and services is single and cannot meet the multi – level and diversified investment and financing needs of green enterprises (projects). At the same time, there is a lack of influential third – party green assessment and certification institutions in the industry. In addition, the in – depth promotion of the construction of the green finance market system also faces a talent bottleneck, especially the shortage of high – quality and compound financial talents.
(6) Imperfect green finance infrastructure
This is mainly manifested in the lagging construction of the green finance big data center and the lagging construction of the pollution discharge right paid – use and trading platform. Currently, the work of collecting fees for the paid – use of pollution discharge rights by the financial departments of cities and counties in Jiangsu Province is relatively primitive, and the system

platform relied on is only limited to the COD (Chemical Oxygen Demand) application stage. The development and use of relevant supporting information systems and statistical tools are lagging behind and basically remain at the stage of spontaneous use by market entities.
V. SWOT Analysis of Nanjing’s Low – carbon Collaborative Development
（一）优势分析（S-Strength）

1. Strong industrial foundation
   Nanjing is an important national comprehensive industrial production base, a modern service center, and an advanced manufacturing base.
2. An important regional financial and business center in China
   The financial industry is an important strategic and pillar industry in Nanjing. The total financial volume and financial resources account for a quarter of Jiangsu Province. It is the second – largest business and trade center city and a regional financial center after Shanghai in the Yangtze River Delta region. It is also positioned by the National Development and Reform Commission as an “important regional financial and business center in China”.
3. Advantage in innovation brands
   Nanjing has been committed to building an innovation – driven city with all – round development of the upstream and downstream industries. After years of brand building, a number of advantageous enterprises with international well – known brands and core competitiveness have been formed. In the list of “Top 100 Innovative Enterprises in Jiangsu Province in 2024”, 14 Nanjing

enterprises are on the list, ranking third in the province in terms of total number.

4. Analysis of the advantages of the Nanjing Metropolitan Area
   It includes Nanjing, Zhenjiang, and Yangzhou. Nanjing, the central city, is the capital of Jiangsu Province and an ancient capital of six dynasties. Zhenjiang and Yangzhou are also famous cultural cities. The Nanjing Metropolitan Area has a profound cultural heritage and rich educational resources. It borders the Hefei Metropolitan Area on the west and the Suzhou – Wuxi – Changzhou Metropolitan Area on the east. It radiates northward to central and northern Jiangsu and has close connections with Zhejiang and Anhui to the south. It has a well – connected geographical location, and political and economic resources are concentrated here, with great development potential. The Yangtze River Delta Plan aims to build the Nanjing Metropolitan Area into a regional innovation and entrepreneurship high – ground and a financial and business service agglomeration area.

(II) Weakness Analysis (W – Weakness)

1. The proportion of the private economy is relatively low
   According to the list of “Top 500 Chinese Enterprises in 2024” released by the China Enterprise Confederation and the China Entrepreneurs Association, there are 40 enterprises from Jiangsu on the list, and only 9 are from Nanjing. Compared with Suzhou and Hangzhou in

the Yangtze River Delta urban agglomeration, the development momentum of private enterprises in Nanjing is slightly insufficient, and the development is very unbalanced. Suning Holdings and Pacific Construction have large revenue scales, while the rest are mostly small, medium, and micro – enterprises, lacking large enterprises with revenues of over 100 billion.

2. Insufficient industrial collaboration in the Nanjing Metropolitan Area
   In 2024, Nanjing’s GDP was 1.85 trillion yuan, still having a certain gap compared with other regional central cities such as Suzhou, Hangzhou, Chengdu, and Wuhan. The Nanjing Metropolitan Area spans two provinces, Jiangsu and Anhui, with certain administrative barriers and institutional obstacles, making cooperation difficult. The cooperation mechanism of cost – sharing and benefit – sharing and the regular coordination and negotiation mechanism have not been fully formed.

(III) Opportunity Analysis (O – Opportunity)

1. New opportunities for collaborative development brought by national policies
   The implementation of national strategies such as the “Development Plan for the Yangtze River Delta Urban Agglomeration”, the “Belt and Road Initiative”, the Yangtze River Economic Belt Strategy, and the national new – type urbanization strategy has provided new impetus for innovating the spatial management model of the Yangtze River Delta urban agglomeration and improving the quality of urbanization. As one of the 26 cities in

the Yangtze River Delta urban agglomeration, Nanjing has also ushered in new opportunities for collaborative development.

2. New opportunities for green and low – carbon development brought by the “Dual Carbon” goal
   As an important supporting means to achieve the “Dual Carbon” goal, the development of green and low – carbon economy and green finance has entered a new historical period, which is also a historical opportunity for Nanjing to vigorously develop the green and low – carbon economy and promote industrial transformation and upgrading.
3. New opportunities for transformation brought
   by the new stage of China’s development
   China’s development has entered a new normal, which requires economic growth to rely more on scientific and technological progress, the improvement of laborers’ quality, and management innovation. This has brought new opportunities for the Yangtze River Delta urban agglomeration to better play its advantages in science, education, and innovation, and promote innovation – driven development and transformation and upgrading. Nanjing has rich educational resources. Renowned universities such as Nanjing University, Hohai University, and Nanjing Normal University have a long history, and the R & D capabilities of scientific research institutions also rank among the top in the Yangtze River Delta. Therefore, Nanjing is facing a rare opportunity for transformation and development.
4. Resource aggregation brought by geographical advantages

Nanjing is the capital of Jiangsu Province, the core city of the Nanjing Metropolitan Area, and the economic sub – center of the entire Yangtze River Delta urban agglomeration. It has significant geographical advantages and the advantage of aggregating regional economic resources, human resources, and logistics resources, which provides impetus for Nanjing’s sustainable development.

（四）威胁分析（T-Threaten）

1. The overall economic situation is severe due to the COVID – 19 prevention and control
   Since the emergence of the novel coronavirus in 2020, China’s economic development has been continuously impacted by the fluctuations of the epidemic situation, and the stability of market development is facing challenges. At the same time, the development of enterprises has also been affected. The personal debt pressure of some residents has increased sharply, and their investment willingness has decreased, resulting in a relatively sluggish economic situation. The GDP growth rate of Nanjing has slowed down, ranking 4th among the 30 cities in the Yangtze River Delta urban agglomeration in 2024.
2. Limited land and development intensity
   Nanjing is in the optimized development area in the “Development Plan for the Yangtze River Delta Urban Agglomeration”, that is, an area where the resource and environmental carrying capacity has reached a stage of saturation. It is required to strictly control the scale of new construction land and development intensity, which limits the land

resources and development channels for Nanjing’s further development. Therefore, if there is no transformation and upgrading, Nanjing’s future development space will be very limited.

3. Fierce competition from neighboring cities
   Hangzhou, another economic sub – center in the Yangtze River Delta urban agglomeration, has developed rapidly in recent years, especially in the Internet technology industry and innovation leadership, directly impacting Nanjing’s position. Suzhou, a neighboring city in the same province, has also had a higher economic aggregate than Nanjing for many years and is closer to Shanghai, with a stronger ability to undertake resource radiation from Shanghai. These cities have a strong competitive relationship with Nanjing for its further leap – forward development.

（五）SWOT矩阵分析
Table 4: SWOT Matrix Analysis Table for Nanjing’s Low – carbon Collaborative Development

(VI) Suggestions for short-term low-carbon coordinated development

Currently, Nanjing is facing a volatile overall economic situation. The sporadic outbreaks of the pandemic have led to frequent occurrences of “black swan” events. However, Nanjing has a solid development foundation, prominent policy and geographical advantages. Therefore, in the short term, the overall development should adopt the ST strategy. The specific suggestions are elaborated as follows:

1. Diversify development to disperse risks
   First, it is necessary to clarify the advantages that Nanjing itself possesses and guide development according to the situation. Seek development opportunities in multiple ways in strong sectors such as the financial industry, manufacturing industry, and creative industry, and strive to find relatively active growth areas in a bear market.
2. Accelerate the transformation to a knowledge-based economy and reduce land occupation and investment
   Leverage the existing advantages in innovative development to accelerate economic transformation, and transform the economic system with industrial manufacturing as the main growth point into a knowledge-based economic system. Innovative financial tools can be used to guide funds to promote the green transformation and low-carbon development of high-tech enterprises and energy-saving and environmental protection enterprises. Thus, on the premise of stabilizing the tax source, reduce land occupation and investment as much as possible to meet the relevant requirements for optimized development

areas in the “Yangtze River Delta Urban Agglomeration Development Plan”.

3. Develop differentially to give full play to comparative advantages
   Clarify one’s own advantages and disadvantages, and adopt a development strategy that is different from that of competitors such as Hangzhou and Suzhou. Prioritize the development of industries with obvious comparative advantages, such as the new electronic information industry, high-end intelligent equipment industry, and green intelligent automobile industry, to form regional industrial clusters in these fields, attract a continuous influx of high-quality resources, and maintain and strive to expand the leading edge.
4. Differentiated development and leveraging comparative advantages
   Clarify one’s own advantages and disadvantages, and adopt a development strategy that differentiates from competitors such as Hangzhou and Suzhou. Prioritize the development of industries with obvious comparative advantages, such as new – generation electronic information industry, high – end intelligent equipment industry, and green intelligent automobile industry. Build a regional industrial high – ground in these fields to attract a continuous influx of high – quality resources, maintain and strive to expand the leading edge.

VI. Suggestions on the Development Ideas of Green Finance in Nanjing
(I) Policy System Construction and Standard

Setting

1. At the provincial level, lead the construction of top – level design and unified standards.
   Nanjing should encourage the Jiangsu Provincial Government to systematically integrate the existing provincial green finance – related policies in accordance with national guiding documents such as the “Guiding Opinions on Establishing a Green Financial System” and the “Green Industry Guidance Catalogue (2019 Edition)”. Specific tasks include: segmenting the green finance field, sorting out and summarizing various policy documents, eliminating policy overlaps and gaps, and finally formulating a systematic and complete provincial green finance development strategic plan and a set of unified green finance standards to ensure the coordinated advancement of the whole province.
   The plan must provide all – round policy support. Especially in terms of risk prevention, it should clearly define the risk compensation mechanism for green finance business and the responsibility division of relevant departments, so as to effectively reduce the business risks of market participants, boost market confidence, and guide social capital to gather in the green field.
2. In terms of policy tools, implement a “tough – and – gentle” combination of incentives and constraints.
   “Tough” policies: These should be reflected in the mandatory nature and binding force of laws and regulations. For example, improve the pollution liability investigation mechanism, formulate clear liability determination standards and specific

penalty clauses to force high – pollution and high – energy – consuming industries to accelerate their green transformation.
“Gentle” policies: These are more manifested as advocacy and incentive regulations. For example, activate the vitality of green finance market players through tax incentives, fiscal interest subsidies, and special re – loans for green credit, and encourage enterprises to innovate in green technologies and projects.
Innovative application of the “tough – and – gentle” combination: The government can design differentiated incentive mechanisms for different green finance products. For example, in the field of carbon emission trading, a “fee – based reward and punishment mechanism” can be explored. That is, charge fees proportionally for products or activities whose carbon emissions exceed the established standards, and provide tax exemptions, interest subsidies and other preferential treatments for efficient and clean products or activities that are below the standards, so as to maximize the incentive effect of policies and create a favorable external environment for the development of green finance in the region.

3. At the municipal level, strengthen policy guidance and industrial green transformation.
   The Nanjing Municipal Government needs to follow the provincial strategic plan and play a leading role. First, it should formulate a special green development strategic plan for the city’s 1,435 industrial parks (as of May 2022). For example, the Nanjing Jiangbei New Area (Nanjing Area of the

Free Trade Zone) has issued the “Implementation Opinions on Further Deepening Green Finance Innovation to Promote High – quality Development of Green Industries”, which can be built into a demonstration center for the green development of industrial parks in the city and even the whole province to lead the high – quality development of green industries. Second, the municipal government should officially incorporate key green indicators such as pollutant emissions into the annual high – quality development target assessment system for districts and industrial parks, strengthen the binding force of the assessment, ensure the implementation of the concept of green and low – carbon development, and drive the coordinated development of neighboring cities.

4. At the county and township levels, focus on policy implementation and the promotion of green living among residents.
   In urban areas: The government can introduce policies to promote the construction of a new – energy bus network around the city and plan activities such as the “National Low – carbon Travel Campaign” through new media platforms. By establishing a points – reward mechanism, residents who choose green travel methods such as new – energy buses, walking, and shared bicycles can get points, which can be used to exchange for daily consumer goods, so as to cultivate citizens’ green living habits.
   In rural areas: Policy focus should be on promoting the refinement and greening of agricultural production and the resource utilization of waste.

The government can support the construction of simple agricultural waste resource utilization stations at the village level through policy guidance and financial subsidies, and develop rural biogas energy projects according to local conditions. At the same time, by selecting and widely publicizing “Green Rural Demonstration Villages”, set examples and promote successful experiences to a wider area to drive green transformation at the grassroots level.
(II) Financial Innovation and Market Practice

1. In terms of market mechanism, build an integrated green finance information platform.
   Unified standards and transparent information are the prerequisites for the efficient operation of the green finance market. As the location of the Nanjing Branch of the People’s Bank of China, the Jiangsu Regulatory Bureau of the China Securities Regulatory Commission, and the Jiangsu Regulatory Bureau of the China Banking and Insurance Regulatory Commission, Nanjing has natural authority and credibility in issuing financial standards. Therefore, it is recommended that Nanjing take the lead in building a “Nanjing Integrated Green Finance Information Platform”. The core functions of the platform include:
   Unified standards and certification: As the official release center of provincial green finance standards, it should set access thresholds and certification rating systems for green projects. This can strengthen standard unity, prevent “greenwashing”, help investors identify high – quality projects, and encourage enterprises to

improve their environmental protection levels to obtain higher ratings.
Strengthen information disclosure: Through relevant regulations, financial institutions and project parties should be required to publicly disclose environment – related information through the platform to increase market transparency.
Reduce costs for all parties: Investors can obtain reliable information and feedback through the platform to reduce investment risks; regulatory authorities can conduct full – process and in – depth supervision of green projects at low cost.
The platform can adopt a three – step promotion strategy: First, conduct a pilot operation in Jiangsu Province. After the model matures, promote it to cities in Anhui Province within the Nanjing Metropolitan Area (such as Wuhu and Ma’anshan) and establish a cross – provincial coordination mechanism; finally, apply the platform and relevant standard systems to the entire western wing of the Yangtze River Delta.

2. In terms of financial products, introduce highly targeted innovative tools.
   Green transformation credit: For traditional enterprises in Nanjing’s leading industries that still have high – energy – consuming links, design credit products that link the loan interest rate with the enterprise’s carbon emission reduction performance. The better the enterprise’s emission reduction effect, the greater the interest rate discount it can enjoy. This special support is used for equipment renewal and process transformation to help them successfully complete the green

transformation.
Green collective bonds for private enterprises: To solve the problems of difficult and expensive financing for small and medium – sized private enterprises’ green projects, green collective bonds can be innovatively issued. Led by a private leading enterprise with good creditworthiness, a group of small and medium – sized enterprises holding green projects are united to form a bond – issuing group, and bonds are issued uniformly in the name of the group. All enterprises in the group bear joint and several liabilities, and guarantee and credit enhancement measures are introduced to reduce the default risk. The raised funds are specifically used for the green industrial projects of member enterprises or their own energy – saving transformation. This can not only broaden the direct financing channels for private enterprises but also effectively guide them towards the path of green development and improve the overall economic development quality of Nanjing.
(III) In project incubation, give full play to the advantages of scientific, educational and human resources.

1. Hold innovation competitions
   Relying on the advantage of a large number of local universities, a “Green Finance Innovation and Entrepreneurship Competition” can be specially held, or a special green finance track can be set up in large – scale national innovation and entrepreneurship competitions such as the “Internet +” competition. College students and social talents are widely invited to offer suggestions

for the development of green finance and inject new impetus.

2. Establish an incubation mechanism
   Nanjing’s business incubation service industry has formed its own characteristics. For outstanding green finance projects that stand out in the above – mentioned competitions, the government can provide special subsidies and invite industry experts for business guidance. Using the mature incubator system, these innovative ideas can be helped to move from concept to practice and finally take root in Nanjing, forming a complete chain from innovation to industrialization.
   In summary, Nanjing has unique advantages and great potential in promoting the development of green finance. By clarifying the multi – level strategic positioning of “Sub – center city of green finance in the Yangtze River Delta, Leading area of green finance in Jiangsu Province, and Demonstration area of green finance in the Nanjing Metropolitan Area” and systematically promoting the construction of policy and standard systems and financial innovation practices, Nanjing can not only achieve high – quality and sustainable economic and social development but also has the ability to lead and drive the green and low – carbon transformation of the Nanjing Metropolitan Area, Jiangsu Province and even the entire western wing of the Yangtze River Delta.

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