China's Green Loans Continue to Surge in the First Three Quarters

China's green loans have maintained a rapid growth trajectory in the first three quarters of the year, according to the latest data from the People's Bank of China. This is a significant indicator of the country's commitment to sustainable development and the fight against climate change.

China's green loans have maintained a rapid growth trajectory in the first three quarters of the year, according to the latest data from the People's Bank of China. This is a significant indicator of the country's commitment to sustainable development and the fight against climate change.

As of the end of the third quarter, the balance of domestic and foreign currency green loans in China reached 35.75 trillion yuan, showing a year-on-year increase of 25.1%. This growth rate is a remarkable 17.5 percentage points higher than that of overall loans. In the first three quarters alone, green loans increased by 5.67 trillion yuan.

Among these green loans, those directed towards projects with direct and indirect carbon reduction benefits amounted to 11.86 trillion yuan and 12.04 trillion yuan respectively, accounting for a total of 66.8% of the green loans. This indicates that China's financial sector is actively supporting projects that contribute to carbon reduction, which is in line with the country's goals of achieving carbon peaking and carbon neutrality.

When looking at the breakdown by purpose, the balances for infrastructure upgrades, clean energy industries, and energy-saving and environmental protection industries were 15.42 trillion yuan, 9.38 trillion yuan, and 5.01 trillion yuan respectively. These figures represent year-on-year growth rates of 23.9%, 29%, and 21.2%. The strong growth in these areas reflects China's focus on transforming its economic structure towards a more sustainable model.

In terms of industry distribution, the balance for the electricity, heat production and supply sector stood at 8.35 trillion yuan, with a year-on-year growth of 22.7%, while the transportation and postal services sector had a balance of 5.78 trillion yuan, growing by 13.4% year-on-year. These sectors are crucial for the country's economic development and also play a vital role in reducing carbon emissions through the adoption of greener technologies and practices.

China's continuous growth in green loans is a positive sign for the global fight against climate change. As the world's largest emitter of greenhouse gases, China's efforts in promoting green finance and supporting sustainable projects are not only beneficial for its own environment but also set an example for other countries to follow. With the government's strong support and the increasing awareness of environmental protection among businesses and the public, it is expected that the growth of green loans in China will continue in the coming years, further driving the country's transition to a low-carbon economy.