What is green finance?

In the Guiding Opinions on Building a Green Financial System jointly issued by seven ministries including the People’s Bank of China and the Ministry of Finance in 2016, “green finance” is first defined as “economic activities for the purpose of supporting the improvement of environment, responding to climate change, and conserving and efficiently using resources, i.e. the financial services provided to project investment and financing, project operations, risk management, etc. in the fields of environmental protection, energy conservation, clean energy, green transport, green architectures, etc.”

In recent years, green finance has become a new development trend of the international financial industry. With the proposal of “carbon peaking and carbon neutrality” goals, the development of green finance has shifted into the “fast lane” in China.

Far East Horizon (03360.HK) adheres to the idea of “developing green finance, practicing green operation, and responding to climate change” to fulfil its responsibility towards the environment; relying on Horizon Construction Development—the professional infrastructure investment and operation service provider under Far East Horizon, it actively deepens its ESG practice, carries out green finance, and offers all-round investment management services for the government, enterprises and institutions, including project investment and financing, engineering construction management and post-investment operation. Up to now, Far East Horizon has accumulatively invested in more than 60 photovoltaic projects and over 40 people’s livelihood infrastructure projects, covering multiple fields including water utilities & environmental protection, urban renewal, green transport and landscaping, to continuously contribute to green and low-carbon development.
 

 
01. Practicing Sustainable Development with Green Footprints Across China 

The development of energy-conserving technology and the effective use of energy is an important link of green development. Responding to the national strategy, Horizon Construction Development specializes in investment in long-cycle and high-quality new energy assets including photovoltaic power, wind power and stored energy, carries out proactive planning for photovoltaic power, and is deeply involved in the construction, operation and maintenance of photovoltaic power projects with one-stop solutions integrating “investment, financing, construction and operation.”
 

A famous ring-pull can manufacturing plant in Guangdong Province faced increased demand for green electricity due to business development, and hoped to lower its operating cost with photovoltaic power. After field research, Horizon Construction Development provided customized whole-process services covering “investment, financing, construction and operation” by utilizing the enterprise’s three production workshop and warehouse roofs (about 45,000 square meters), which satisfied the client’s needs for electricity consumption and emission reduction and was highly recognized by the client. 

With a capacity of 4.2MW and an investment of about 19 million yuan, this project was put into operation on December 21, 2021. Each year, it can provide the enterprise with 4.62 million kWh of green energy, accounting for 30% of its total electricity consumption. Compared to a thermal power plant with the same generating capacity, it saves about 1392.9 tons of standard coal for the power grid (coal consumption of thermal power is calculated as 301.5g/kWh, the standard coal consumption value of power supply by the national thermal power generating unit), and reduces carbon dioxide emission by 3800 tons each year. 

Right now, the green footprints of Horizon Construction Development can be found all over the country. Having invested in more than 60 photovoltaic projects, it saves about 29107.6 tons of standard coal for the power grid annually, and accordingly, it reduces the emission of many air pollutants every year, including about 80,000 tons of carbon dioxide, 9.8 tons of sulfur dioxide, 14.7 tons of nitrogen oxide, 2,1 tons of fume, etc.

 02. Serving 300 Enterprises with a Single Project Processing 9 Million Tons of Sewage Annually

Green finance integrates the concept of environmental governance into investment decision-making, and promotes environmental protection and governance. The conservation of water resources is the most direct measure to improve the environment and benefit the people. Horizon Construction Development pays continuous attention to fields including wastewater treatment and smart water affairs, plays an active part in investment into this industry, and carries out multiple water quality improvement projects in places like Jiangsu and Hubei.

Bird’s eye view of the sewage treatment plant

The Sihong Economic Development Zone of Suqian, Jiangsu Province was established in March, 2002, its leading industry being mechanical and electrical equipment and new membrane materials. Due to the concentration of manufacturing industry, how to reasonably collect and dispose of sewage and promote energy conservation and emission reduction in the city has become a problem demanding prompt solution for the local government. On its basis, the Sihong County started bidding for the construction of a sewage treatment plant for the Economic Development Zone in 2016. As the leading party of investment and construction, Horizon Construction Development won the bid with a total investment of about 1.17 billion yuan.

After three years of construction, the first phase of the sewage treatment plant has officially begun operation. This sewage treatment plant adopts the mode of “one enterprise one pipe + common pipe shared by multiple enterprises” and is equipped with a pipe network with a total length of 278KM. Covering nearly 25 square kilometers, the pipe network can collect sewage discharged by over 300 industrial enterprises within this region and dispose of more than 9 million tons of sewage annually, thus effectively improving the living environment of nearby residents, raising the quality of water resources in Sihong, protecting the ecological environment of the Yangtze River Basin, and forming a beautiful picture of “harmonious landscape with clear water and green banks as well as a close relationship between people and water.”

Comparison of water quality before and after sewage treatment 

03. Invested and Constructed by Horizon Construction Development, the First Suspension Bridge in Xi’an Raised Traffic Efficiency 5 Times

It has been pointed out in the 14th Five-Year Plan for the Development of Green Transport to “optimize spatial layout and construct green transport infrastructure.” In accordance with the “green building” and “green transport” concepts, Horizon Construction Development has invested in, constructed and improved nearly 20 green transport projects (including municipal roads, highway bridges, ports, etc.) in order to serve green urban upgrade. 

Horizon Construction Development participated in the investment in and construction of the road PPP project to improve the periphery of Xi’an Convention & Exhibition Center—the North Jiancai Road (Beichen Avenue – Yinbin Avenue) project. It is the first suspension bridge in Xi’an as well as the world’s widest spatial self-anchored suspension bridge. This project has a total length of 2.317KM, and consists of 10 sub units such as road, bridge, water supply & drainage, cable & pipe rack, transport, illuminating, landscape planting and footbridge projects. 

The project started on October 24, 2019 and was opened to traffic on June 28, 2022. The concept of green construction runs through the entire life cycle of this project, and 24 green construction technologies are applied. Thus, this project has been awarded the honor of “green construction demonstration (construction) project of the construction industry of Xi’an.”

Since the bridge was opened to traffic, the traffic efficiency of this section has been raised 5 times due to factors including stable bridge structure, level and solid road surface, stable and comfortable driving experience, reasonable indicators and good lighting effect. Its outstanding contribution to the optimization of urban functional structure and the promotion of regional integration has won unanimous praises from all parties of the society. 

 
Over the years, Horizon Construction Development has dived into the field of infrastructure investment, continued to expand the depth and width of its services, and diversified investment into the industry. It provides services across China, covering various infrastructure fields including municipal roads, viaducts, industrial parks, urban renewal, landscaping, school exhibition halls, water utilities & environmental protection, and photovoltaic power stations.

In the future, Horizon Construction Development will keep serving urban upgrade with social forces, promoting low-carbon development with green finance, and co-constructing an infrastructure investment and operation ecosystem, to co-create green value and a green future through joint efforts!

*Actions corresponding to the sustainable development goals of the United Nations