The Government Work Report presented during 2021 Two Sessions called out for a concrete roadmap for the 2030 carbon peak.
As many experts agree, green finance will play a significant role in achieving this goal.
Chen Yulu, the Deputy Governor of the People’s Bank of China (PBoC) and a member of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), introduced PBoC’s new strategy of using “three major functions” of green finance to accelerate green development. Fulfilling 2030 and 2060 goals will be further supported by improving the “five pillars” of the green financial system.
According to this strategy, PBoC will use monetary, credit, and supervisory policies to leverage financial resources and direct them towards low-carbon and green innovation projects. Application of tools such as climate risk stress testing, environmental and climate risk analysis, green and brown asset risk weight adjustment were highlighted as powerful leverages for the financial system to better manage risks related to climate change. PBoC will also promote the development of national ETS, carbon futures, and other carbon financial products.
Link in Chinese:
http://www.pbc.gov.cn/goutongjiaoliu/113456/113469/4201524/index.html