Provincial Bank First to Roll Out Carbon-Neutrality Lending Plan

What’s new: Bank of Jiangsu Co. Ltd. became China’s first bank to roll out a carbon-neutrality lending plan, vowing to lend no less than 200 billion yuan ($30.52 billion) between now and 2025 on climate change-related projects, state media Shanghai Securities News reported (link in Chinese) on Sunday.

The bank also pledged to provide loans worth at least 50 billion yuan in the clean-energy sector with the goal of reducing carbon emissions by more than 10 million tons, according to the report.

What’s the background: China introduced a “carbon-neutrality loan” this year to support companies undergoing an energy transformation, usually at a coupon interest rate.

Investment in China’s green energy sector could amount to 60 trillion yuan by 2060 as the world’s biggest carbon emitter looks to achieve its target of carbon neutrality in the next 40 years, China International Capital Corp. Ltd. predicted last month.

Quick Takes are condensed versions of China-related stories for fast news you can use.

Contact reporter Lu Yutong (yutonglu@caixin.com) and editor Heather Mowbray (heathermowbray@caixin.com)

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