Transition within the financial system towards a greener economy. Its not only about European Central Bank, Federal Reserve or Central Bank of Brazil as we posted in the last days.
Last Sunday also the Central Bank of China (PBOC) made important annoucements .
PBOC indicated continuity in leveraging structural monetary policy tools, including carbon emission reduction facility (CERF) to guide financial institutions to beef up support for green development and other areas. The key structural monetary policy tools are:
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CERF will be extended to the end of 2024 and will cover some local and foreign financial institutions, seeking to expand policy benefits and advance international cooperation in green finance
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the special PBOC credit line for clean and efficient coal use will last until the end of 2023.
The above two tools will work together in 2023 to promote the transition to a green and low-carbon economy on the basis of the security of energy supply so as to help achieve the goals of carbon peaking and carbon neutrality with scientific and well-ordered steps.
PBOC also mentioned short term attention for micro, small, and medium-sized logistics and warehousing enterprises, with a view to further enhancing financial support for smooth transportation and logistics and contributing to the high-quality development of the transportation and logistics sector.
The annoucement concludes by indicating that the PBOC will “continue to increase support for inclusive finance, green development, sci-tech innovation, infrastructure construction, and other key areas and weak links”.
Last year, in June, the PBOC said it was guarding against “moral hazards” such as greenwashing and sustainable project fraud as it expands its use of green monetary policy to drive the nation’s energy transition. In a rare interview conducted in English with a state broadcaster, Governor Yi Gang warned against the “greenwashing, low-cost fund arbitrage, and green project fraud” that has been on the rise alongside the influx of sustainable capital in recent years.
In early June, Beijing also issued new green finance guidelines that require Chinese banks and insurers to set up grievance mechanisms that would help investors hear from local communities and understand the ESG impacts. Click at the image below to read more .
Last but not least, you can also recall this post from May 2022, China’s First ESG Disclosure Guidance .
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- Source: https://www.carboncreditmarkets.com/en/single-post/green-economy-china-s-central-bank-recent-actions
