Opinion: For PBOC’s New Green Lending Tool, Transparency and Verification Are Key

The carbon emission reduction facility is a green version of the targeted refinancing operations that have been used by central banks after the Global Financial Crisis in a variety of ways. Photo: VCG

Global efforts to expedite the transition to a sustainable future require a significant shift in financial flows. The institutions governing finance play a vital role in achieving this objective. Central banks stand at the heart of this endeavor and are increasingly rising to the challenge. The recent launch by the People’s Bank of China (PBOC) of a carbon emission reduction facility (CERF) is a case in point. 