The key messages from the Governor Yi Gang opening remarks during the Green Finance and Climate Policy high-level meeting organized on April 15th by PBoC and IMF.
By 2030 China will need to invest 2,2 trillion RMB annually to reduce carbon emissions. To encourage private capital participation:
?The PBoC plans to set up a mandatory disclosure system with uniform standards and promote greater information sharing between financial institutions and companies.
?The PBoC is about to finish revising the green bond catalog by removing fossil fuel projects and is cooperating with international partners to harmonize the taxonomies.
?The PBoC plans to provide low-cost funds for carbon emission reduction and other tools like commercial credit ratings, deposit insurance rates, and collaterals for open market operations.
?The carbon market should allow financial derivative trading. It would ensure that all risks are reflected in the carbon price, and the incentivizing role of the carbon price is fully exploited.
Additionally, PBoC will support capacity-building projects such as the Climate Risk Management Training Program through the “China-IMF Capacity Development Center” (CICDC).
Link in English:
http://www.pbc.gov.cn/en/3688110/3688172/4157443/4232144/index.html