The People's Bank of China recently published its second-quarter statistical report on loan flows by financial institutions. The overall financial volume has been growing steadily, and the credit structure is continuing to improve. Major strategies, key areas and previously weak links are receiving better support. As a result, the quality and efficiency of financial services that support the real economy have further improved.
This photo shows the scenery of Fengwu Village, Yixian County, Huangshan City, east China's Anhui Province, July 24, 2025. (Photo: Xinhua)
A particularly striking statistic is that by the end of the second quarter, the total balance of China's green loans, in both local and foreign currencies, reached 42.39 trillion yuan (approximately $5.91 trillion), representing a 14.4 percent increase since the beginning of the year, with an increase of 5.35 trillion yuan in the first half alone.
Support has intensified for green infrastructure upgrades, energy green and low-carbon transformation, and ecological protection, restoration and utilization. These sectors saw increases of 2.11 trillion yuan, 588.9 billion yuan and 562.2 billion yuan, respectively, in the first half; by the end of the second quarter, loan balances reached 18.75 trillion yuan, 8.25 trillion yuan and 4.95 trillion yuan, respectively.
When examining various industries, sectors such as energy and transportation have received more consistent funding. Green loan balances for electricity, gas and water production and supply reached 8.66 trillion yuan, reflecting an increase of 674.2 billion yuan in the first half of the year. Meanwhile, green loan balances for transportation, warehousing and postal services amounted to 7.64 trillion yuan, with an increase of 639.7 billion yuan during the same period.
It's not only about loans. Related data indicates that in the first half of the year, green, technology and associated bond issuances surpassed 1 trillion yuan. Additionally, the market sizes for green insurance, green trusts and other sectors rank among the largest in the world.
These remarkable data demonstrate China's ongoing commitment to advancing high-quality green finance development.
An aerial drone photo taken on July 3, 2025 shows a solar power station for agricultural use in the Yi-Hui-Miao Autonomous County of Weining, southwest China's Guizhou Province. (Photo: Xinhua)
Deepening financial reform to guide green development
China is the first country in the world to establish a comprehensive framework for green finance. Over the years, financial regulatory departments have continuously improved the institutional design for green finance through relevant policies. Various departments and sectors have strengthened their coordination and collaboration, effectively guiding and incentivizing financial institutions to innovate products and services that support sustainable development.
For example, in many regions, finance, industry and information technology, ecological environment departments, and power supply companies work together to comprehensively and promptly collecting enterprise energy data across all categories—cooling, heating, electricity, coal, gas—and precisely calculate enterprises' "green credentials" to support financial institutions in designing and developing green credit products such as "carbon account" loans.
Environmental protection, meteorological, agricultural and geological departments have enhanced information sharing with insurance institutions. This collaboration has expanded the coverage for crop, forestry and environmental pollution liability insurance. Additionally, new insurance products, such as carbon sink index insurance, have been introduced. The focus on achieving green development goals provides clear guidance, addresses obstacles, creates supportive platforms and boosts the development of green finance.
An aerial drone photo taken on Jan. 11, 2025 shows an offshore wind farm near the coast of Yancheng, east China's Jiangsu Province. (Photo: Xinhua)
Economic transformation fuels green finance growth
Finance is the lifeblood of the economy. In recent years, localities and departments have accelerated the development of green industries, with new energy vehicles, lithium batteries, solar energy and other green sectors maintaining high growth rates.
In the first half of 2025, new energy vehicle production and sales increased 41.4 percent and 40.3 percent year on year, respectively, with green consumption gradually becoming a new trend.
In developing green industries, finance is not only a service provider but also a beneficiary and driving force. Individual companies grow from "seeds" to "towering trees" with funds, insurance, credit, bonds and other financial products providing support throughout. Green industry clustering and strengthening give rise to more green financial products, with financial institutions growing alongside industries and gaining more abundant development momentum.
The low-altitude economy is building momentum, the marine economy is accelerating development and the sharing economy is becoming increasingly standardized. China's economy is full of new ideas and highlights as it becomes greener. With strong demand for low-carbon transformation and robust momentum in green finance, funding needs to achieve the 2030 carbon peak target are expected to exceed 25 trillion yuan, leaving vast room for green finance development.
China's green finance leads globally, representing a microcosm of China's continuously improving green and low-carbon development economic policies and the comprehensive green transformation of economic and social development.
In the future, China will actively promote the comprehensive green transformation of its economic and social development, establish a green, low-carbon, circular economic system, create efficient clusters of ecological green industries and vigorously advocate for green and healthy lifestyles across society.
Green finance and green industries in China will continue to advance together, thriving in mutual prosperity.