PBOC’s Vice Governor Says China Plays Leading Role in Green Finance
Du Chuan
DATE:  Oct 21 2021
/ SOURCE:  Yicai
PBOC’s Vice Governor Says China Plays Leading Role in Green Finance PBOC’s Vice Governor Says China Plays Leading Role in Green Finance

(Yicai Global) Oct. 21 -- The quality of China's green finance assets is generally good, with bad green loan ratios below the average for non-performing loans at the country’s commercial lenders, and there have been no defaults on green bonds, according to Chen Yulu, vice governor of the People's Bank of China. 

Speaking at the 2021 Financial Street Forum yesterday, Chen said China's outstanding green loans are close to CNY14 trillion (USD2.19 trillion) and outstanding green bonds are close to CNY1 trillion (USD156.3 million), both among the highest in the world. 

China values the role of finance in green and low-carbon development and was one of the first countries to develop green finance, Chen said, adding that the country has been actively developing a green finance support framework in the past five years. 

China was the only major economy that realized positive growth last year, with a gross domestic product of over CNY100 trillion (USD15.6 trillion). It also achieved a sustained decrease in energy use per unit of GDP and a 1 percentage point increase in the share of clean energy consumption from 2019, he said. 

"This indicates that China still adhered to the principle of green development even when it was dealing with the pandemic," Chen added. "Green finance has played an important role and contributed to China's high-quality economic recovery." 

China was the first of the G20 countries to propose green finance and has been its most active advocate, Chen said, noting that the country actively participates in and leads international cooperation in the field. 

The Network of Central Banks and Supervisors for Greening the Financial System, of which the People’s Bank of China is a participant and initiator, has been expanded to include over 90 formal members and 14 observers. It is committed to analyzing the risks of climate change from the perspective of central banks and regulators and supporting the expansion of green finance. 

China also launched the International Platform on Sustainable Finance with the European Union and other economies to focus on the study of topics such as international convergence of green finance standards. The China-EU Common Standards on Green Finance will soon be released, aiming to promote green and low-carbon development in more countries and regions. 

Editors: Xu Wei, Tom Litting

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Keywords:   Green Bonds,PBOC,Central Bank,Chen Yulu