China’s financial sector is set to promote the steady growth of green finance in support of green and low-carbon development, as the world’s second-largest economy advances towards building a beautiful China, a central bank official announced at a conference on Wednesday.
Zhu Hexin, deputy governor of the People’s Bank of China (PBOC), emphasized that the financial sector must focus on the effectiveness of green finance in generating environmental benefits and fostering industrial transformation and upgrading. He highlighted the critical role of financial institutions in channeling funds towards sustainable projects that contribute to environmental protection and economic modernization.
“We must ensure that green finance not only grows steadily but also delivers real environmental benefits,” Zhu said. “This involves promoting projects that reduce emissions, conserve energy, and support the transition to a low-carbon economy.”
The initiative aligns with China’s broader commitment to environmental sustainability and combating climate change. By leveraging financial tools and policies, China aims to facilitate investment in renewable energy, energy efficiency, and other green industries, thereby reducing its carbon footprint while maintaining economic growth.
Industry analysts note that the move will likely attract both domestic and international investors interested in sustainable development opportunities within China. The emphasis on green finance underscores China’s dedication to meeting its environmental goals and contributing to global efforts in addressing climate challenges.
The PBOC has been actively promoting green finance through various measures, including green bonds, green credit, and incentives for financial institutions supporting environmentally friendly projects. These efforts are expected to enhance the financial sector’s ability to support the country’s transition to a more sustainable economic model.
As China continues to press ahead with building a beautiful China, the focus on green finance represents a significant step towards achieving a harmonious balance between economic development and environmental protection.
Reference(s):
China to increase finance support for green, low-carbon development
cgtn.com
