China Boosts Green Finance in Pursuit of Carbon Neutrality
Starting from July 8, the People's Bank of China, the country's central bank, will conduct a quarterly evaluation on financial institutions' green finance business and implement incentives and constraints based on the evaluation results.
Businesses that comply with green finance standards and relevant regulations, including green loans and green securities, will be evaluated.
The catalogue will steer China's green bonds to focus more on green and low-carbon development strategies, better support the development of green finance in China and promote international cooperation in the field of green finance, said the statement.
By the end of 2020, green loans and green bonds in China totaled 1.8 trillion U.S. dollars and 125 billion U.S. dollars, respectively, ranking as the world's largest and second-largest. More than 40 carbon-neutral bonds have been issued, with a total volume of over 10 billion U.S. dollars.
To achieve carbon neutrality by 2060, China's green investment needs to reach 2.2 trillion yuan (about 340 billion U.S. dollars) per year in the current decade, and the amount will grow to 3.9 trillion yuan in the period from 2031 to 2060, according to a report from French bank Societe Generale.
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