The Shenyang branch of the People’s Bank of China (PBOC) has released a new directive with the goal of driving green, low-carbon growth in the north-eastern province of Liaoning.
PBOC’s branch in Shenyang – the Liaoning province capital, recently released the “Implementation Opinions on Improving the Green Financial System and Driving the Green, Low-carbon Development of Liaoning” (完善绿色金融体系助推辽宁绿色低碳发展的实施意见) in conjunction with the Liaoning province government.
The Opinions seek to “guide capital to concentrate in the green sector, and expedite the green, low-carbon development of Liaoning”.
Measures and targets outlined by the Opinions include:
- Ensuring that the green loan balance grows by 500 billion yuan within the next three years.
- Average annual growth in the green loan balance of 10%.
- The creation of specialist re-loan facilities for green loans and green bills, with individual quotas of 10 billion yuan to provide targeted support for green enterprises and green projects.
Liaoning’s green loan balance currently stands at 352.596 billion yuan, for year-on-year growth of 17%, while 15 financial institutions in the province have obtained low cost funds of 3.7 billion yuan via carbon emissions reduction support tools.
This has driven 6.2 billion yuan in lending to the carbon emissions reduction sphere with a weighted average interest rate of 3.41%, which is expected to lead to a reduction in annual CO2 emissions of 1.25 million tons.