The two ministries urged investment and financing to enter the low-carbon economy

The Ministry of Environmental Protection and the Ministry of Science and Technology said on the 23rd that they will fully promote the integration of investment and financing institutions and environmental protection enterprises, so that more funds can enter the low-carbon economy.
On the same day, the two ministries jointly launched the “Strategy for Promoting the Development of Low Carbon Economy Investment and Financing”. Zeng Xiaodong, vice chairman and secretary general of the China Environmental Protection Federation, the Ministry of Environmental Protection said that the urgent need to solve the low-carbon economy development is technological innovation, and the most fundamental guarantee for technological innovation is capital. At present, financial support has become an important link that restricts technological development and innovation.
“The state attaches great importance to the development of the environmental protection industry and serves as a new economic growth point.” Liu Zhiquan, deputy director of the Science and Technology Standards Department of the Ministry of Environmental Protection, said that during the “Twelfth Five-Year Plan” period, the national environmental protection investment will exceed 3 trillion, including environmental protection facilities. The investment will exceed 1 trillion. At the same time, the country will expand pollution control indicators and projects, and environmental protection companies face greater industrial opportunities.
According to reports, the average annual growth rate of China's environmental protection industry during the 11th Five-Year Plan period is 15-20%, which is higher than the growth rate of the national economy during the same period. "It is expected that there will be a relatively rapid development during the 12th Five-Year Plan period." Liu Zhiquan said that the Ministry of Environmental Protection is cooperating with the Ministry of Science and Technology for the current shortage of key technologies and the small scale of enterprises, especially the serious shortage of funds. Banks, insurance and other departments have begun to build a diversified investment and financing system.
“Recently, we are stepping up our contacts with banks to find more funds for companies, including venture capital.” Liu Zhiquan said.
Xiu Xiaoping, deputy director of the Torch Center of the Ministry of Science and Technology of China and secretary of the Risk Investment Professional Committee of the China Science and Technology Finance Promotion Association, said that the integration of technology and environmental protection is unimaginable without the support of funds. The arrival of a low-carbon economy requires strong financial support. Especially in the field of high technology, capital, talent and technology are of decisive significance.
According to reports, the "Promoting the Development of a Low-carbon Economy Investment and Financing Strategic Alliance" will have a working group that will conduct a preliminary review of the application for funds submitted by the China Environmental Protection Association member companies, and propose a preliminary review report. After the financing docking process, the investment institution and the applicant company signed an investment and financing cooperation agreement for capital injection. The Alliance Working Group continued to follow up and advance the follow-up process of the investment and financing project.
According to relevant sources, the investment and financing obtained through this process will save about 20% of the cost of similar investment and financing in the society.  

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