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PBOC Carbon Credit Tools Shouldn’t Be Seen as Loosening: Daily

MNI (Singapore)

The carbon credit tools introduced by the PBOC to boost green lending should not be seen as a rate-cut in disguise, but serve to guide the financial industry to recognize the significance of transition toward a green economy, the Economic Daily said in a commentary. Some observers estimated as much as CNY1 trillion to be released by these tools, equivalent to a full-scale reduction of RRRs, and this would be a misinterpretation, the official newspaper said. The carbon-reduction tools have not set a funding quantity limit but will "accurately" target emerging industries with large potential for cutting emissions, it said. The credit will support operations with clear due dates and require disclosure, it said.

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