Core Insights - The article highlights the first VEP (Value of Ecosystem Products) pledge loan by Industrial Bank, amounting to 100 million yuan, secured against the ecological value of the Sichuan Xichang Qionghai Wetland Scenic Area [1][2] - VEP represents the total value of various ecological product revenues generated within a specific geographic area over a defined development period, focusing on material supply, regulatory services, and cultural services [1] - Industrial Bank has been a pioneer in green finance in China, developing innovative products like carbon emission rights pledge loans and water rights pledge loans to enhance green financing accessibility for enterprises [2] Company Initiatives - Industrial Bank has launched several innovative green financial products, including the first GEP (Gross Ecosystem Product) pledge loan in Sichuan and the first market-based forestry biological asset note pledge loan in Fujian [2] - The bank aims to bridge the gap between ecological value and financial value, promoting the dual transformation of "green mountains and clear waters" into "golden mountains and silver mountains" through its financial products [2] - As of the end of September, Industrial Bank's green finance financing balance reached 2.47 trillion yuan, with green loan balance at 1.103781 trillion yuan, supporting projects that can reduce carbon dioxide emissions by over 27 million tons annually [2]

Core Insights - The article discusses the transformation of ecological products into financial assets, addressing challenges such as difficulty in measurement, collateralization, trading, and monetization [1][2]. Group 1: VEP Pledge Loan - Recently, Industrial Bank launched its first VEP (Value of Ecological Products) pledge loan, providing a loan of 100 million yuan to the project operator of the Sichuan Xichang Qionghai Wetland Scenic Area, which is a national AAAA-level scenic area [1]. - VEP represents the total value of various ecological product revenues that can be generated from specific geographic areas over a defined development period, encompassing material supply, regulatory services, and cultural services [1]. - The VEP pledge loan is a green loan product that quantifies ecological values such as vegetation biomass, water conservation, climate regulation, oxygen release, carbon sequestration, and biodiversity maintenance [1]. Group 2: Green Financial Innovations - As a pioneer in green finance in China, Industrial Bank actively develops products that realize ecological value, having introduced innovative products like carbon emission rights pledge loans, water rights pledge loans, and forest rights pledge loans [2]. - The bank has made significant strides in ecological value realization, including the first GEP (Gross Ecosystem Product) pledge loan in Sichuan and the first market-based forestry biological asset bill pledge loan in Fujian [2]. - As of the end of September, Industrial Bank's green finance financing balance reached 2.47 trillion yuan, with a green loan balance of 1.103781 trillion yuan, supporting projects that can achieve annual carbon dioxide emissions reductions exceeding 27 million tons [2].

Core Viewpoint - The transformation of Longjiang River in Fuzhou City, from an ecologically challenged state to a clean and green environment, is significantly attributed to the continuous support of green finance, particularly through the provision of preferential loans by Industrial Bank [1][2] Group 1: Green Finance Development - Since 2022, Industrial Bank has provided a total of 217 million yuan in green preferential loans for the comprehensive governance project of Longjiang River, significantly reducing financing costs and ensuring project progress [1] - As of June 2025, the balance of green loans at Industrial Bank reached 1,075.6 billion yuan, maintaining the leading position among joint-stock banks, with projects supported achieving annual CO2 emissions reduction of 27.86 million tons and annual water savings of 18.36 million tons [2] - Industrial Bank is the only domestic bank to receive the highest ESG rating for six consecutive years from MSCI, reflecting its strong commitment to green finance [2] Group 2: Challenges in Green Finance - The transformation of ecological value into economic value remains a challenge, particularly in terms of valuation and financial recognition [3] - There is a need for effective mechanisms to track funds and assess benefits to ensure that green funds are used appropriately and to incentivize borrowers to maintain low-carbon practices [6][8] - Industrial Bank has actively explored solutions to these challenges, including the establishment of risk-sharing mechanisms in collaboration with government and enterprises [8] Group 3: Innovative Loan Models - Industrial Bank has pioneered various types of loans linked to ecological performance, such as a 270 million yuan loan for the ecological protection project at Xiazhu Lake, which incorporates future carbon credit sales as a repayment source [5][6] - The bank has developed a loan mechanism where interest rates are tied to the ecological performance of projects, providing incentives for borrowers to achieve green performance targets [7] - The bank emphasizes that it will not lower risk standards for projects labeled as "green," ensuring that all projects meet stringent risk control requirements [9]