China to expand 3 structural monetary policy tools to support green development Gulf Business News

China will continue to take advantage of three structural monetary policy tools, including the Carbon Reduction Credit Facility, as part of efforts to guide financial institutions to enhance their support for green development and other areas, the country’s central bank said.
The credit facility to support carbon emission reduction will extend until the end of 2024, with some local and foreign financial institutions included to deepen international cooperation in green finance, according to the China News Agency ( Xinhua).
The special lending tool to promote clean and efficient use of coal will be implemented by the end of 2023 to accelerate the transformation towards green and low-carbon development and to meet the peak and carbon neutrality.
The central bank will also extend the special loan facility for the transport and logistics sector until the end of June this year to further strengthen financial support for smooth transport and logistics, according to the circular.
In the next step, the central bank pledged to continue to increase its support for inclusive finance, green development, science and technology innovation, infrastructure construction and other key areas and weak links with structural monetary policy tools.