The Agricultural Bank of China (ABC) has made the first loan in China that uses carbon credits for collateral, just following the launch of the national carbon market in July.
On 27 August ABC’s Hubei branch made a loan of 10 million yuan to chemical enterprise Hubei Sanning Huagong Co., Ltd. (湖北三宁化工股份有限公司) that was collateralised with carbon emissions credits.
An executive from the Hubei branch of ABC said that the next step would be for the bank to “actively respond to the nation’s concepts of upholding green development and low-carbon concepts, and seize the opportunity of national carbon emission registration settlement bodies establishing themselves in Wuhan.”
