Ten departments of Chenzhou City, including Chenzhou Branch of the People’s Bank of China (PBC), issued a notice to launch the "Carbon for Future" Green Finance Project, in a bid to support the city’s development as a national innovation demonstration zone for the UN 2030 Agenda for Sustainable Development.

Under the principle of "government policy support, financial capital driving and green industry development", the notice takes into account Chenzhou’s geographical advantages and development actualities. It focuses on ramping up green financial support for three key areas: sustainable utilization of water resources, realization of ecological product value, and green transformation of major industries.

It specifies detailed financial support measures for eight sub-sectors under three projects: pollution reduction and efficiency improvement, green expansion and efficiency improvement, as well as low-carbon development and efficiency improvement. The move will further optimize the green financial policy framework and working mechanism, diversify green financial products and service models, and improve supporting measures for green finance.

A raft of concrete steps were spelled out in the notice.

First, a database of green and low-carbon enterprises and projects will be established and dynamically updated by competent authorities in line with key projects of the national sustainable development innovation demonstration zone.Second, the PBC Chenzhou Branch will leverage the guiding and driving role of various structural monetary policy tools, direct branches of national commercial banks to enhance targeted support, make full use of re-lending for agriculture and micro and small enterprises, and incentivize local banks to increase green loan issuance.

Third, financial and fiscal policies will be better coordinated. Eligible counties (cities, districts) will be encouraged to introduce interest subsidy policies for green loans, improve financing guarantee and risk compensation measures.

Fourth, two working systems will be set up, namely a coordination mechanism for green finance to serve the construction of a beautiful Chenzhou, and a monitoring and evaluation mechanism for the effectiveness of green financial policies, in order to enhance policy synergy.

By the end of 2025, the outstanding green loans in Chenzhou stood at 74.97 billion yuan, representing a year-on-year increase of 19.2%, 9.4 percentage points higher than the growth rate of all loans in the city during the same period.

Going forward, the PBC Chenzhou Branch will work with relevant departments to strengthen policy coordination, and continuously guide local banking institutions to bolster green financial support for building a more beautiful Chenzhou.

Chinese source: hunantoday