17 Jun Green Finance Pilot Zones and Platforms Paving the Way in China
The Central Bank of China announced on June 16 measures to support the establishment of five green finance pilot zones. The aim of the pilot zones is to boost the development of green finance products including interest discount and tax incentives from central and local governments, Chen Yulu, vice-governor of the People’s Bank of China announced during a policy briefing as reported in China Daily. The central bank indicated it will support the zones through preferential loans and low-cost capital from green development funds. Green finance will help improve the environment and increase efficient utilization of resources, a significant component in China’s commitment to the Paris climate accord, the vice-governor said.
In tandem on June 16th as reported by Reuters, China and the Asia Development Bank (ADB) announced they launched a green financing platform to support efforts by small- and medium-sized enterprises to cut pollution in the smog-hit Beijing-Tianjin-Hebei region. As reported by Reuters, financing the transition to cleaner energy has proved one of its biggest challenges, especially in poorer rural regions of Hebei, where the switch from coal to natural gas is expected to cost at least 300 billion yuan ($44.04 billion) over the 2016-2020 period.