China to advance green finance development: Central bank

China will step up efforts to support green industries with innovative financial products and services, the country's central bank said on Tuesday.

Wang Xin, director-general of the Research Bureau of the People's Bank of China (PBOC), speaks at the press briefing on Feb. 9, 2021. [Photo by Xu Xiang/China SCIO]

The People's Bank of China (PBOC) will push the development of green loans, bonds, and insurance, as well as derivatives as part of efforts to support peaking carbon dioxide emissions and achieving carbon neutrality, said Wang Xin, an official with the PBOC, at a press briefing.

By the end of last year, the country's outstanding green loans reached nearly 12 trillion yuan (about 1.86 trillion U.S. dollars), topping the world, Wang noted. He added that the bad loan ratio of green loans stood far below the average of the loans issued by commercial banks.

To increase green transition support, the central bank will optimize financial institutions' evaluations of their green finance businesses. It will also make better use of digital and financial technology in environmental information disclosure and sharing, Wang said.

China's policymakers have vowed increased financial support for green development during the key Central Economic Work Conference held in December.

In line with the meeting, the central bank has listed improving the policy framework for green finance as one of its main tasks for 2021.

The PBOC will channel more financial resources toward green development and promote a carbon emission trading market with reasonable pricing. It will also gradually improve green finance standards and continue promoting international green finance cooperation, the PBOC said during an annual work conference in January.