What’s new: With China set to launch its national carbon emissions trading market, a top Chinese banking regulatory official suggested Wednesday that carbon credits may be used as collateral to obtain bank loans.
Application of carbon credits — which are permits for companies to emit a certain amount of carbon dioxide — to back borrowing is “something that can be explored,” Ye Yanfei, head of the Policy Research Bureau of the China Banking and Insurance Regulatory Commission, said Wednesday at a State Council press conference.
As of March 31, 21 major Chinese banks have provided 12.5 trillion yuan ($1.9 trillion) of green loans, which are subject to certain environmental criteria, accounting for 9.3% of total outstanding loans, Ye said. More than 70% of the loans support green transportation, renewable energy and the energy conservation and environmental protection industry, he said.
The background: China plans to launch its national carbon emissions trading market in July to help meet the country’s ambitious climate goals, China’s environmental ministry announced Wednesday.
Zhao Yingmin, vice minister of the Ministry of Ecology and Environment, said at a press conference that online trading will commence this month and that the carbon trading market will initially involve more than 2,200 power plants across the country.
He also said the market will help the country lower its greenhouse gas emissions and meet its pledge to top out carbon emissions by 2030 and achieve carbon neutrality, or net-zero carbon emissions, by 2060.
Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.
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