China’s central bank said on Tuesday that China will intensify its efforts to support green industries with innovative financial products and services.
Wang Xin, an official with the People’s Bank of China (PBOC), said at a press conference that the People’s Bank of China will push the development of loans, bonds and green insurance, as well as financial derivatives as part of efforts to support the capping of carbon dioxide emissions at their peak and achieving carbon neutrality.
Wang noted that by the end of last year, the country’s unpaid green loans amounted to nearly 12 trillion yuan (about 1.86 trillion US dollars), topping the world stage. He added that the percentage of bad loans for green loans was much lower than the average loans issued by commercial banks.
To further support the green transition, the central bank will improve financial institutions’ assessments of their green finance business. Wang said he will make better use of digital and financial technology in disclosing and sharing environmental information.
Chinese policymakers pledged to increase financial support for green development during the main Central Economic Work Conference held in December.
In line with the conference, the central bank listed improving the policy framework for green finance as one of its key missions for 2021.
The People’s Bank of China will direct more financial resources towards green development and promote the affordable carbon emissions trading market.
The People’s Bank of China said during its annual business conference in January that it would also gradually improve green financing standards and continue to enhance international cooperation in green finance.
The article, Central Bank: China will push green finance development, was written in the Stock Exchange newspaper.