China extends low-cost loans for carbon reduction to ’27

China’s central bank, the People’s Bank of China (PBOC), will extend a programme providing low-cost loans to financial institutions aimed at helping companies reduce carbon emissions until the end of 2027, according to an announcement by the State Council on Sunday.

The PBOC launched the scheme in 2021, offering banks up to 60 per cent of the principal for qualified loans at a one-year lending rate of 1.75 per cent.

This extension is part of China’s broader plan to achieve a “green transformation” of its economy, which includes promoting battery-powered vehicles, energy-efficient appliances, and sustainable building materials.

The country aims to increase non-fossil energy consumption to about 25 per cent by 2030 and to have its economy fully on a green, low-carbon track with declining emissions by 2035.

Attribution: Reuters