China's outstanding green loans in both local and foreign currencies have exceeded 25 trillion yuan ($3.5 trillion) as of the end of the first quarter, ranking among the top in the world, Yi Gang, governor of the People's Bank of China, the country's central bank, said on Thursday.
Also ranking as one of the world's biggest, the country's green bond balance has surpassed 1.5 trillion yuan as of the end of March as China has developed a multilayer green finance system with green loans and green bonds as the main components, Yi said.
Stressing that achieving carbon neutrality needs "carrots and sticks", Yi said the central bank has provided "carrots" via the carbon emission reduction facility that provides commercial banks with loans with interest rates as low as 1.75 percent.
The facility, with a balance of almost 400 billion yuan, has supported financial institutions in issuing loans of about 670 billion yuan as of the end of April and driven more than 150 million tons in carbon emission reduction, Yi said while addressing the 14th Lujiazui Forum 2023.
The definition of green finance is not uniform worldwide, necessitating strengthened negotiations to further achieve the trading of green finance products globally, Yi said, adding that China has continuously worked with the European Union to promote the convergence of green finance standards.
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