One of China’s big three policy banks had set ambitious targets for increases in the share of its green loan portfolio as part of efforts to advance Beijing’s carbon mitigation goals.
The China Development Bank (CDB’s) recently issued its “Action Plan for Implementation of the Green Low Carbon Finance Strategy and Supporting Peak Carbon and Carbon Neutrality” (实施绿色低碳金融战略 支持碳达峰碳中和行动方案), outlining a timetable, road map and implementation plan for supporting China’s carbon mitigation targets.
The Action Plan outlines an increase in CDB’s green loans as a share of all loan assets of at least 5 percentage points by 2025, with green loans to account for around 30% of all loan assets by 2030.
In 2020 the Chinese central government set the targets of achieving peak carbon by 2030 and carbon neutrality by 2060.
As of the end of November CDB’s green loan balance was 2.4 trillion yuan, putting it first amongst Chinese domestic banks.
CDB’s green loans cover areas including clean energy, green urbanization, green transit facilities, energy efficiency upgrades to industrial facilities, the protection and maintenance of natural ecosystems and the development of environmental infrastructure.