BUSINESS China steps up support for debt financing for green projects

BUSINESS

China steps up support for debt financing for green projects

Xinhua

14:53, May 14, 2019

BEIJING, May 14 (Xinhua) -- China will support the issuance of debt financing instruments in the pilot zones for green finance to facilitate green projects, the central bank has said.

04a93a07-dbef-44af-a136-25352251ea61.jpg

The People's Bank of China (Photo: VCG)

Non-financial firms in the green finance pilot zones will be encouraged to issue a variety of debt financing instruments including asset-backed securities to raise funds for energy conservation, environmental protection, pollution control and other green projects, the People's Bank of China (PBOC) said in an online statement Monday.

Local governments are encouraged to introduce preferential policies to support the issuance of green debt financing instruments and provide financial incentives for issuers, the PBOC said.

The central bank also noted that the credit risk of enterprises should be strictly evaluated and the solvency of green projects should be closely monitored to further improve the green finance early warning mechanism.   

China announced plans in 2017 to set up pilot zones for green finance, in a bid to support its industrial upgrades and anti-pollution campaign.

The pilot zones are in Guangdong, Guizhou, Jiangxi and Zhejiang provinces as well as Xinjiang Uygur Autonomous Region, according to plans issued by the PBOC and six other agencies.

Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue