China sets up pilot zones to boost green finance

Each of the five pilot zones will support different initiatives — from energy savings and emission reduction to agriculture and agricultural waste treatment — through innovative green credit products.

China announced plans on Monday to set up pilot zones for green finance, supporting its industrial upgrades and anti-pollution campaign.

The pilot zones will be in Guangdong, Guizhou, Jiangxi and Zhejiang provinces as well as Xinjiang Uygur Autonomous Region, according to plans issued by the People’s Bank of China and six other agencies.

Financial institutions will be given incentives, including easier market access, financial support and favourable land policies, to expand green financing.

China expects to have a multi-level system for green finance in the next five years in the zones. Green credit should grow, while the non-performing loan ratio of green credit will not surpass that of loans for small businesses.

The pilot zones will be in eastern, central and western parts of the country at different stages of development, so their focuses of support will differ.

For example, the zone in Guangzhou will encourage innovative credit products to support energy saving and emission reduction, while that in Guizhou will focus on green credit for agriculture and agricultural waste treatment.

This story was published with permission from China.org.cn

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