Expand new space for economic and trade development through green trade

In the face of the accelerating evolution of the global green rule system, it is necessary to deeply integrate institutional innovation, technological empowerment, and market development to enhance the green trade capabilities of enterprises, promote the expansion and quality of green trade, and improve the green trade guarantee system.

The Fourth Plenary Session of the 20th Central Committee of the Communist Party of China emphasized "accelerating the comprehensive green transformation of economic and social development" and "enhancing the momentum of green development". The "Proposal of the Central Committee of the Communist Party of China on Formulating the 15th Five Year Plan for National Economic and Social Development" proposed expanding green trade. Expanding green trade is not only a vivid practice of the concept of "green mountains and clear waters are as valuable as mountains of gold and silver", but also an important pivot to promote China's industrial chain to the high-end of the global value chain. In the face of the accelerating evolution of the global green rule system, it is necessary to deeply integrate institutional innovation, technological empowerment, and market development to enhance the green trade capabilities of enterprises, promote the expansion and quality of green trade, and improve the green trade guarantee system.

Enhance the green trade capability of enterprises

Strengthen green standards and technological application capabilities. Currently, international rules such as the EU Carbon Border Adjustment Mechanism continue to deepen, requiring companies to break through the constraints of traditional high carbon production models. Therefore, it is necessary to carry out "zero carbon factory" or "green workshop" technology demonstrations to support enterprises in establishing a green management system that covers the entire process from research and development design, raw material procurement, production and manufacturing to recycling and disposal, and to use technologies such as the Internet of Things and AI to achieve intelligent control of energy consumption and emissions throughout the production process. Introduce product carbon footprint accounting and life cycle assessment methods, promote domestic standards and international mutual recognition of advantageous products such as photovoltaic modules and new energy vehicles. By enhancing the discourse power and technological penetration of green rules in enterprises, 'Made in China' can become a 'hot selling product' in the international market.

Establish a collaborative mechanism for green supply chain. In the context of deep integration of the industrial chain into global division of labor, the green transformation of individual enterprises is difficult to form economies of scale, and must be achieved through supply chain collaboration to achieve overall leapfrogging. Support chain owners to take the lead in formulating green evaluation and grading standards for the supply chain, sign green contracts with suppliers, and reduce environmental costs throughout the entire chain through sharing carbon reduction technologies and jointly building green logistics systems. We will focus on promoting green integrated transformation of foreign trade bases and industrial clusters, building shared green infrastructure in key foreign trade industrial clusters, and establishing closed-loop management from green procurement of raw materials to the end. This radiating green transformation centered around the chain owner enterprise will significantly enhance the international green competitiveness of China's industrial clusters.

Deepen the construction of green brands and culture. In today's global awakening of consumer environmental awareness, the "China Green Brand International Promotion Program" can be established to guide enterprises to actively participate in global ecological and environmental initiatives. Through ESG (non-financial performance such as environmental, social, and corporate governance) report disclosure, green product certification, and sustainable marketing, brand trust can be enhanced, and brand affinity can be improved through ecological storytelling. Injecting ecological wisdom of simplicity, moderation, low-carbon and recycling into product design, ultimately forming a green brand matrix supported by cultural soft power, achieving a leap from price competition to value competition.

Promote the expansion and quality improvement of green trade

Expand the export scale of green products and services. The export scale is a fundamental indicator for measuring the effectiveness of green trade development. China has formed industrial advantages in areas such as wind power equipment and power batteries, but the overall proportion of green exports still needs to be improved. We should focus on supporting the export of green products such as high-efficiency energy-saving equipment and low-carbon building materials, and cultivate knowledge intensive service trade such as environmental consulting and carbon asset management. Establish a national level green technology trading platform to promote cross-border transactions of green technologies and patents. Develop and dynamically update the recommended directory of green export products, and monitor green trade dynamically. By reducing the cost of green technology application through economies of scale, China can become an important base for global green product supply as soon as possible.

Optimize the layout of the green trade market. Faced with the challenge of rising unilateralism, a diversified market strategy should be implemented to build a more resilient global green trade network. While continuing to consolidate the markets of developed countries, we will jointly build green demonstration parks with countries along the "the Belt and Road", promote China's green standards, technologies and equipment, and drive the overall green export. Establish a "green zone" through cross-border e-commerce platforms to expand online export channels. By embedding environmental clauses in free trade agreement negotiations and building cross-border green supply chain corridors, a new trade pattern of North South progress and South South mutual assistance will be formed.

Cultivate new forms of high value-added green trade. We should vigorously develop high-end knowledge value chain formats such as new energy technology licensing and carbon neutrality technology services, promote the export of productive service trade such as green design and green finance, and explore new trade models that integrate digitalization and greening. Support enterprises in building international transfer centers for green technology and creating a complete chain of green technology innovation ecology. Seize the commanding heights of global green technology through innovative business models and shape new trade advantages for the future.

Establish a sound green trade guarantee system

Improve the framework of green trade system. Institutional supply is the cornerstone of sustainable development of green trade. We should accelerate the formulation of the "Green Trade Promotion Regulations", clarify China's green commodity catalog and certification rules, and establish a carbon accounting standard system that is in line with international standards. Promote the establishment of a collaborative supervision mechanism among customs, taxation and other departments, implement differentiated customs clearance policies based on carbon content, and improve the joint punishment system for green trade violations. Stabilize market expectations through legal means and provide clear and stable rule guidance for green trade activities.

Innovative green finance policy tools. Green trade has the characteristics of large initial investment and long return cycle. It is necessary to innovate and develop exclusive products such as green trade credit and green export credit insurance, explore the establishment of a green trade development fund, and encourage the development of supply chain finance solutions linked to carbon footprint. Pilot cross-border green capital flow facilitation measures in the pilot free trade zone to promote the greater role of RMB in green trade settlement. By building a multi-level financial service system, the financing cost of green trade can be effectively reduced, and more social capital can be guided to flow into the green field, forming a virtuous cycle between capital and industry.

Strengthen the discourse power of international green rules. The discourse power of international green rules directly affects the degree of realization of national interests. It is necessary to actively participate in international green trade rule negotiations under the framework of the World Trade Organization and build a rule consultation system supported by relevant think tanks. Promote China's green trade program through bilateral and regional cooperation platforms, and promote the establishment of a green standard international mutual recognition and connection mechanism that is inclusive of different stages of economic development. Relying on disciplines related to green trade, we aim to cultivate a large number of green trade talents for international organizations. By actively participating in international negotiations and consultations on green trade rules, we aim to enhance China's voice in the international green rules system and open up broader development opportunities for China's green trade.

(Author Qian Zhiquan is the Executive Vice President, Professor, and Doctoral Supervisor of the Ecological Civilization Research Institute at Zhejiang A&F University; Xuan Xueke is a Master's student at the School of Economics and Management at Zhejiang A&F University)