China’s central bank will provide cheap funding to banks that lend to companies contributing towards reducing carbon emissions, according to a report by Bloomberg.
- The People’s Bank of China will lend money to financial institutions to assist them in providing loans to firms working on energy transition in China.
- In a statement on Monday event, PBOC stated will lend 60% of the required funds at an interest rate of 1.75% and banks could use the money to provide loans at a higher rate close to the loan prime rate.
- The funding will help companies involved in clean energy, energy-saving, environment-friendly industries and carbon emission reduction technology.
- The technologies includes wind and solar power, high efficiency power storage and transmission of clean energy and is likely to support earlier-stage firms with potential to cut emissions.
PBOC will require public disclosure of the use of the loans and quantification of the emissions cut with the funding. CSI 300 down -0.030%, CNY USD down -0.01%