Central bank to provide low-cost loans supporting carbon emission reduction
Published: Nov 08, 2021 11:57 PM
PBC Photo:Xinhua

PBC Photo:Xinhua

The People's Bank of China (PBC), the country's central bank, said on Monday that it will provide monetary policy tools, such as low-cost loans for financial institutions that will be issued to enterprises in the key areas of carbon emission reduction, to help the country achieve its carbon neutrality goals.

The PBC will provide 60 percent of the loan principal to enterprises for carbon emission cuts, with a one-year interest rate of 1.75 percent, and such loans can be issued twice, according to a statement on the PBC's website. 

The support tools will be offered to enterprises in three key areas of carbon emission reduction, including clean energy, energy conservation and environmental protection, as well as technologies used for cutting carbon emissions. 

The PBC said the tools will mainly support industries that are still at the initial stage of their development, but that have a lot of potential for cutting emissions. Niche sectors in each category involve wind power generation, solar energy utilization, hydrogen utilization as well as technologies for carbon capture, storage and utilization, the statement noted.

China has been pushing an all-out and sweeping effort to achieve its carbon emissions peak and carbon neutrality goals. On Sunday, the Central Committee of the Communist Party of China (CPC) and the State Council published guidelines that laid out a path for the world's second-largest economy to accelerate green and low-carbon development. 

According to the guidelines, by 2025, CO2 emissions per unit of GDP will drop by 18 percent compared with 2020, the environment will continue to improve and the total discharge of major pollutants will carry on decreasing.?

By 2035, green working and living norms will be widely adopted, carbon emissions will be stable and the goal of building a beautiful China will be basically achieved.

Global Times