China Expands Green Lending and Bond Initiatives

The People's Bank of China (PBoC) plans to extend its low-interest green loan program until 2027, facilitating commercial lenders to fund carbon reduction projects at a benchmark rate, with significant financial backing from the central bank. By mid-2023, the program had allocated 880 billion yuan ($123 billion) to projects, reducing approximately 215 million tonnes of CO2 emissions. Concurrently, China's National Development Bank (NDB) issued 12 billion yuan ($1.7 billion) in green bonds, aimed at cutting carbon emissions by 697,200 tonnes annually, reflecting increased investor confidence with a subscription multiple of 3.08. The projects funded by these bonds support energy conservation and clean energy initiatives, contributing to China's sustainability goals. Additionally, Xinjiang Goldwind Science & Technology Co. announced the issuance of 2 billion yuan in Green Ultra-Short-Term Financing Bonds to enhance its financial stability, demonstrating the active role of various entities in promoting green finance in China.