MNI BRIEF: PBOC To Provide Cheap Funding For Green Growth

The People’s Bank of China will continue to provide low-cost funds to support carbon-emission reduction and green-energy expansion to meet transition targets, said Governor Yi Gang Thursday during the Lujiazui Forum in Shanghai

The PBOC launched two special monetary policy tool incentives that targeted carbon-emission reduction and clean-coal technology, which totaled over CNY400 billion at the end of April. Meanwhile, authorities have shored up green finance via setting standards, providing cheap capital, and promoting information disclosure to encourage private sector participation, Yi introduced.

China will see “a profound change in all aspects of its industrial and energy structure, production methods and lifestyles” when it realises carbon neutrality in the shortest time, but most intensive pace, in the world, during which green finance will play a key role, he stressed. By the end of March 2023, outstanding Chinese green loans exceeded CNY25 trillion and green bond issuance was over CNY1.5 trillion, both of which ranked among the highest in the world.