Central bank to intensify support for carbon goals

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China is taking solid steps to foster a green, low-carbon path of high-quality development, as it aims to meet its ambitious goals of peaking carbon dioxide emissions before 2030 and achieving carbon neutrality before 2060, political advisers said on Thursday.

The People’s Bank of China, the country’s central bank, will enhance efforts to support the transformation of businesses away from traditional sources of energy such as fossil fuels through a new financial framework, Jin Penghui, a member of the 13th National Committee of the Chinese People’s Political Consultative Conference, said on the sidelines of the ongoing two sessions, on Thursday.

Jin, who is also vice-president of the Shanghai head office of the PBOC, said the bank is working on building a new transitional financial system so that more substantial support can be put in place for the low-carbon transformation from fossil fuels, especially coal.

The PBOC has spared no effort in facilitating moves on carbon reduction, and relative financial measures will continue, Jin said.

He added that over the past several years, the PBOC has formulated a low-carbon oriented financial system through which substantial funding has been provided to alternative energy such as wind and solar power via green bonds and loans. This funding support has greatly shored up the growth of these new energy sectors.

Wu Gang, a member of the 13th National Committee of the CPPCC and chairman of Xinjiang Goldwind Science and Technology Co Ltd, said the booming development of wind power will help the nation achieve its ambitious carbon peaking and neutrality goals.

Wu said China has become the world’s largest wind power equipment manufacturing base as well as a key exporter of wind turbines and parts, adding wind power has become the third-largest power source behind thermal power and hydropower in the nation.

The National Energy Administration said China’s installed capacity of grid-connected wind power has reached 300.15 million kilowatts, double that of 2016, and it has been tops globally for 12 consecutive years.

Wu said areas rich in wind and solar energy resources such as the Xinjiang Uygur autonomous region, Qinghai province and Gansu province have witnessed green and booming development of equipment manufacturing.

“More than 140 billion kilowatt-hours of green and clean electricity has been delivered to the central and eastern regions of China from Xinjiang, the Inner Mongolia autonomous region and other places every year,” he added.

“Currently, six Chinese wind power equipment manufacturers have made their name in the ranks of the world’s top 10 wind power equipment manufacturers. And large-scale wind power equipment made in China has been shipped to more than 40 countries across the world.”

He Lifeng, head of the National Development and Reform Commission, said China is fully confident of achieving its carbon peaking and neutrality goals.

“That will create new development and business opportunities, such as spurring the development of emerging sectors and the upgrading and renovation of old equipment,” he said, speaking on the sidelines of the ongoing two sessions.

He added that pushing ahead with carbon peaking and neutrality work will effectively improve living conditions in both rural and urban regions, promote green development and contribute to the global response to climate change.

The Chinese government has pledged to take well-ordered steps to meet the two carbon goals, according to the 2022 Government Work Report on Saturday.

The report said the country will work to upgrade coal-fired power plants to conserve resources, advance the planning and construction of large-scale wind and photovoltaic power bases, and promote the research, development and application of low-carbon green technologies.