BEIJING — China announced plans on June 26 to set up pilot zones for green finance, supporting its industrial upgrades and antipollution campaign.
The pilot zones will be in Guangdong, Guizhou, Jiangxi and Zhejiang provinces as well as Xinjiang Uygur autonomous region, according to plans issued by the People’s Bank of China and six other agencies.
Financial institutions will be given incentives, including easier market access, financial support and favorable land policies, to expand green financing.
China expects to have a multilevel system for green finance in the next five years in the zones. Green credit should grow, while the nonperforming loan ratio of green credit will not surpass that of loans for small businesses.
The pilot zones will be in eastern, central and western parts of the country at different stages of development, so their focuses of support will differ. For example, the zone in Guangzhou will encourage innovative credit products to support energy saving and emission reduction, while that in Guizhou will focus on green credit for agriculture and agricultural waste treatment.