China’s Banks Sponsor Growth of ‘Green’ Economy
Chinese banks offered strong credit support for the growth of the Green economy in Y 2015.
The total balance of Green loans issued by China’s 21 major financial institutions rose 16.42% last year to RMB 7.01-T, according to a report released Friday by the China Banking Association.
It is estimated that the projects supported by these loans could have saved about 221-M tonnes of standard coal, 756-M tonnes of water, and reduced emissions of CO2 (carbon dioxide) and SO2 (sulfur dioxide) by 550-M tonnes and 4.85-M tonnes last year, the report said.
Chinese banks strictly limit loans to highly polluting industries or those operating at overcapacity or consuming lots of energy, according to the report. Some banks issued no loans at all to these industries for 2 years running.
Green finance has become a major part of China’s national strategy.
It uses institutional and policy arrangements to encourage more investment in energy-saving and environmentally friendly projects via financial products and services such as loans, bonds, stocks, private equity, insurance and carbon emissions trading.
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