The People’s Bank of China is set to offer loans to local lenders focused on working toward cutting down carbon emissions.
- The PBOC said it will lend 60% of the needed funds at an interest rate of 1.75%, which can be used to provide loans at a higher rate.
- The program seeks to support firms in clean energy, energy-saving, environment-friendly sectors, and those in carbon emission radiation technology.
- The PBOC said it will require public disclosure of the use of the loans, and the quantification of the emission reduced in line with the funding.
- The project comes as President Xi Jinping has pledged to reduce China’s carbon emissions to neutral levels by 2030.
- The PBOC did not indicate the possible amount of funding but noted that the funds’ interest rate is among the lowest for its policy tools.