China to update green finance standards
China will provide easier access for international investors to the domestic green finance market with an updating of domestic green finance standards and strengthening of international cooperation, according to the central bank governor.
As the Chinese leadership has announced its aim to reach carbon emissions peak by 2030 and achieve carbon neutrality by 2060, the central bank will take measures to support the carbon neutrality objective, Yi Gang, governor of the People's Bank of China, said in his speech at the Singapore FinTech Festival via video.
"We will consider the possibility of mandatory requirements for financial institutions to disclose environment-related information," Yi said on Wednesday.
The PBOC will also strengthen study on the potential impact of environmental and climate risks on financial stability, and the central bank will continue to harness FinTech in promoting green finance, he said.
In China's green finance pilot zone Huzhou of Zhejiang province, the local government has established an integrated green finance service platform by using big data technology, which helped to bridge green projects and financial institutions. It also allows the PBOC to monitor green loans provided by banks as well as other underlying data.
As of June 2020, outstanding green lending in China exceeded 11 trillion yuan ($1.68 trillion), ranking first globally, while the stock of green bonds totaled 1.2 trillion yuan, the second largest in the world, according to data from the PBOC.
