A multi-department notice was released on Friday to bolster financial support for the development of China's green factories.
The Ministry of Industry and Information Technology and the People's Bank of China (PBOC) have jointly issued the notice, establishing a financial support framework through four key mechanisms to provide green factories with high-quality and cost-effective financing services. According to the notice, support will be prioritized for investment projects involving green and low-carbon technologies, undertaken by green factories. Mechanisms will be established for aligning supply with demand, facilitating financing connections, and conducting monitoring and supervision.
Financial institutions are encouraged to enhance their support by improving internal management systems, strengthening green credit offerings, and expanding direct financing channels. They will also develop specialized financial products, including seamless loan renewals without principal repayment, and medium- to long-term loans.
"By establishing and improving four mechanisms -- coordinated promotion, financial supply, supporting safeguards, and risk prevention, this notice aims to effectively provide financial services for green factories and ensure that funding is directed toward green sectors," stated Yu Jian, deputy director-general of the credit market department at the PBOC.
By the end of the third quarter of this year, China's green loan balance stood at 43.51 trillion yuan (approximately 6.16 trillion U.S. dollars), up 22.9 percent year on year, while cumulative green bond issuance totaled 4.95 trillion yuan, ranking among the highest globally.
China issues notice aimed at enhancing financial support for green factories
