The Chinese central bank will extend the use of three monetary policy tools designed to encourage financial institutions to support green technologies and the logistics sector, the People’s Bank of China (PBOC) said in a statement.
The bank will continue to offer cheap funding until the end of 2024 to banks which lend to firms that are helping reduce carbon emissions. The policy tool was first adopted in November 2021.
The PBOC will allow some local and foreign financial institutions to join the project and deepen global cooperation in green finance, the statement said. It didn’t identify the newly added lenders.
The bank’s relending program for clean-coal use will be extended until the end of 2023, the PBOC said.
China wants to transition its economy to a green, low-carbon one while ensuring energy supply security, according to the statement.
The relending project for the logistics sector will remain until the end of June and smaller logistics and storage companies will be added, the PBOC said.
The central bank said it will expand support for green development, scientific innovations, infrastructure and broadening the availability of finance to more people.