PBOC Adds Green Bonds to System for Grading Financial Institutions
What’s new: China’s central bank will include green bonds in an evaluation system for reviewing financial institutions’ business performance in green finance, as part of efforts to fulfill Beijing’s ambitious climate goals.
The evaluation system, which was launched three years ago, will include performance metrics for both green bonds and green loans starting July 1, compared with only green loans currently. Both are used to finance ecofriendly or low carbon emissions projects.
Under the new evaluation system, financial institutions will be graded based on metrics including the share of total assets made up by green loans and green bonds, and the year-on-year change in the total value of their green loans and green bonds, the People’s Bank of China said in a Wednesday statement (link in Chinese).
The background: China is recalibrating its approach to economic development in light of the bold climate pledges it made last year. Beijing has committed to bringing carbon emissions to a peak by 2030 and reducing them to net zero by 2060.
Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.
Contact reporter Tang Ziyi (email@example.com) and editor Michael Bellart (firstname.lastname@example.org)
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