China's green loans maintain rapid growth in 2021

BEIJING, Jan. 31 (Xinhua) -- China's green finance saw robust expansion last year, a central bank report showed, adding to the evidence of the country's continuous efforts to pursue low-carbon growth.

Outstanding green loans in yuan and foreign currencies reached 15.9 trillion yuan (about 2.5 trillion U.S. dollars) by the end of 2021, jumping 33 percent from the previous year, according to the People's Bank of China (PBOC).

A green loan refers to a form of financing where funds go to areas such as energy conservation and clean energy that make contributions to environmental protection and improvement.

Specifically, green loans for projects with direct or indirect carbon-reduction benefits stood at 7.3 trillion yuan and 3.36 trillion yuan, respectively. Together, they accounted for 67 percent of the total green loans.

Outstanding green loans for production and supply in the utility sector came in at 4.41 trillion yuan, climbing 25.7 percent year on year, while those for transport, warehousing and postal services stood at 4.13 trillion yuan, an increase of 14.2 percent, PBOC data showed.

China has advanced rapidly in developing its green financial system and markets, as part of efforts to achieve its carbon peaking and neutrality goals.

By 2020, green loans and green bonds in China totaled 1.8 trillion U.S. dollars and 125 billion U.S. dollars, respectively, ranking as the world's largest and second-largest.