The People's Bank of China (PBOC) announced that it has listed Deutsche Bank (China) and Societe Generale (China) as the financial institutions for the Carbon-reduction Supporting Tool. This marks the first time that foreign financial institutions have been included since the creation of the Carbon-reduction Supporting Tool. The two added foreign banks have accumulated experience in areas such as ESG (environmental, social, and governance) and green finance.

When the Carbon-reduction Supporting Tool was first launched, it was made available to 21 national financial institutions, and the inclusion of the two foreign-funded banks reflects China's strong commitment to green transition, its unwavering stance on opening up, and its equal treatment of foreign-funded financial institutions, providing them with national treatment and supporting their business and development in China.

Extended Reading

In November 2021, the PBOC, together with the National Development and Reform Commission (NDRC) and the Ministry of Ecology and Environment, launched the Carbon-reduction Supporting Tool. PBOC provides low-cost funds for financial institutions and guides them to provide carbon reduction loans to all types of enterprises in the key areas of carbon reduction on an equal footing. The Carbon-reduction Supporting Tool highlights the leverage of social funds, i.e., the use of incremental funds to support key areas such as clean energy, energy conservation and environmental protection, and carbon emission reduction technologies. This not only supports the development of green energy-saving areas, but also avoids crowding out the funds required by the traditional energy industry, thus helping to ensure national energy security and promote a green and low-carbon transition.