Shanghai's Lujiazui Financial City wants to become Asia's green finance hub. [Photo/Pudong Times]

Shanghai's Lujiazui Financial City plans to build a green finance comprehensive information platform and a green finance projects database, and issue a "Lujiazui Standard" of green finance, in an attempt to develop the area into Asia's green finance center as soon as possible, authorities announced at a forum on May 15.

Green finance aims to direct financing more towards activities that are environmentally friendly, reduce pollution and greenhouse gas emissions, and improve energy efficiency.

Lujiazui will collect various green finance projects nationwide and build a green finance database after the official launch of the information platform, according to Zhu Yuan, deputy director of public relation and brand promotion department of the Lujiazui Financial City Development Bureau.

The "Lujiazui Standard" of green finance will be based on overseas experience, the standard set up by People's Bank of China, and local practices, Zhu explained.

The standard aims to conform to China's national condition and be practicable so that domestic green bond investors can do risk evaluation.

Some Lujiazui companies have already tapped into the green finance sector. For instance, the Shanghai Stock Exchange piloted a green bonds business in March 2016. By the end of March the exchange had issued 14 green bonds and four green asset-backed securitization products worth 25 billion yuan ($3.6 billion). Similarly, the Bank of Communications issued a green financial bond of 30 billion yuan in 2016.