The Chinese government said on Sunday the country’s central bank will extend a programme that gives financial institutions low-cost loans to help companies cut carbon emissions.
The People’s Bank of China (PBOC) will extend the policy to support carbon-reduction projects by companies for three more years – up till the end of 2027, China’s State Council announced.
The PBOC financing scheme was launched in 2021. The financing window gives banks up to 60% of the principal for qualified loans at a one-year lending rate of 1.75%.
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Push for ‘green transformation’ of economy
In a sweeping statement of policy goals that was short on specific implementation plans, China also promised to develop tax and investment policies that would support what Beijing calls a “green transformation” of the world’s second-largest economy.
The plan included commitments to promote battery-powered vehicles, energy and water-saving home appliances and the use of more environmentally friendly building materials.
It repeated a target China had previously set to increase the proportion of non-fossil energy consumption to about 25% by 2030.
The overall target, according to the plan announced on Sunday, was for China to put its economy “fully on the green and low-carbon track” by 2035 with declining carbon emissions by that time.
- Reuters with additional editing by Jim Pollard
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