The People’s Bank of China (PBOC) is preparing measures to support China’s broader campaign to transition towards a low carbon economy.
PBOC announced on 25 March that in order to help China satisfy carbon reduction targets it would establish “carbon emissions reduction support tools,” as well as guide commercial banks in expanding their financial support for efforts to reduce carbon emissions in accordance with market principles.
The Chinese central bank hopes that these measures will help to drive more financial resources to green and low-carbon sectors.
PBOC also said that it would push for commercial banks to strictly implement green finance standards, engage in services innovations, strengthen information disclosures, and promptly make adjustments to allocations of credit resources.
In 2020 China set the two goals of achieving peak carbon before 2030 and carbon neutrality by 2060, while at the start of this year green finance was included as a “key mission” for 2021 as well as for the 14th Five Year that runs from 2021 to 2025.