China's Outstanding Green Loans Surpass CNY 22 Trillion

As per People's Bank of China Governor Yi Gang, China's outstanding green loans presently surpass 22 trillion yuan ($3.2 trillion), accounting for almost 10% of the country's overall loan balance.

Separately, China's green bonds have surpassed 2.5 trillion yuan, according to Yi, who spoke at the Boao Conference in southern China's Hainan province.

"Achieving carbon neutrality necessitates 'carrots and sticks,'" Yi explained, adding that a central bank incentive system that offers commercial banks with loans with interest rates as low as 1.75 percent might be considered a "carrot."

To help reduce carbon emissions, the central bank has provided more than 300 billion yuan through a lending instrument that has assisted banks in making 600 billion yuan in green project loans.

The central bank said in January that it will continue to use the relending instrument through the end of 2024.

According to Zhao Chenxin, deputy head of the National Development and Reform Commission, China is developing policies to encourage green and low-carbon growth.

China plans to peak its carbon dioxide emissions by 2030 and attain carbon neutrality by 2060.