MNI BRIEF: China To Launch New Tools For Low Carbon Transition

Chinese authorities will unveil fiscal and financial tools at a timely pace to mobilise private funds to invest in carbon emission reduction projects, said Xuan Changneng, deputy governor of the People Bank of China, at the Bund Summit in Shanghai sponsored by the China Finance 40 Forum on Saturday.

China will further enhance financial instruments for the low-carbon transition of its economy, he said, noting innovations in equity financing and securitisation products. He said mitigation tools should be developed to diversify financing channels for qualified companies.

Policymakers should pay more attention to employment and guide financial institutions to increase support for regions, industries, and groups that will be under pressure during the green transition to prevent financial risks and maintain economic and social stablility, Xuan pointed out.

The PBOC will guide financial institutions to improve their capacity to support green finance and align with plans to reach carbon neutrality and a peak in carbon emissions, he said.