The People’s Bank of China stated that while it develops the use of green monetary policy to support the nation’s energy transition, it will be vigilant against moral risks, including greenwashing and sustainable project scams.
China aims to achieve carbon neutrality by 2060
With peak emissions by 2030 and carbon neutrality by 2060 as its environmental goals, China, the world’s greatest polluter, has accelerated private investment.
Green bonds, green loans, and other financial products are created to support these objectives. In just a few years, China has grown to be one of the leading issuers.
Regulators are nonetheless acutely aware of the dangers associated with lax supervision and easy access to credit, though. The People’s Bank of China will continue to advocate for disclosure and stringent control because defaults have already resulted from making riskier borrowers easily accessible to less expensive green lending.