China will update its green finance standards to make it easier for foreign investors to enter the market.
China plans to improve its green finance standards to support its carbon neutrality goals and facilitate foreign investors’ entry into the green finance market, central bank governor Yi Gang said on Wednesday.
“We will promote the harmonization of green finance standards at home and abroad by updating national standards and strengthening international cooperation,” Yi said via video at the Singapore Fintech Festival.
Carbon neutrality refers to the balancing of a country’s carbon emissions with actions to mitigate their effects, such as planting more trees or capturing environmentally harmful gases and sequestering them underground. .
President Xi Jinping pledged in September that China would peak its global warming greenhouse gas emissions by 2030 and achieve carbon neutrality by 2060, committing the country to an accelerated transition to renewable energy. .
China has excluded “clean coal” from a list of projects eligible for green bonds, according to new draft guidelines released by the central bank in May.
In June 2020, China’s green loan outstanding exceeded 11 trillion yuan ($ 1.69 trillion), the largest in the world, while its green bonds totaled 1.2 trillion yuan (186.2 billion dollars), the second largest in the world, Yi said.
Financial technology, including big data, artificial intelligence and blockchains, will play an increasing role in supporting green finance, Yi said.
He said China would strengthen its study on the potential impact of environmental and climate risks on financial stability.