The Chinese government will only cover a small portion of the hundreds of trillions required to meet its carbon neutrality goals, according to the People’s Bank of China which called on financial institutions to help close the gap.
PBoC governor Yi Gang reiterated Beijing’s commitment, saying the issue will be considered when implementing monetary policy and conducting supervision.
Hundreds of trillions of yuan will be required and financial markets must take the lead in providing funding, Yi said in published comments based on the China Development Forum on Saturday.
Market-Led
According to Yi, the Chinese government will only fund a «tiny fraction» of the cost and implement public policy incentives that will help close the gap, underlining the need to establish a «market-oriented» green finance policy.
Chinese President Xi Jinping has pledged to make the country reach peak emissions by 2030 and carbon neutrality by 2060.
