China central bank mulls tools to cut carbon emissions

Photo taken on March 3, 2021 shows a solar thermal power project in Gonghe County in northwest China's Qinghai Province. (Xinhua/Zhang Hongxiang)

BEIJING, May 12 (Xinhua) -- The People's Bank of China (PBOC), the central bank, will introduce financial instruments to help cut carbon emissions amid the country's broader green transition efforts, the PBOC said Tuesday.

The central bank will guide financial institutions to step up support for technological innovation, small and medium-sized enterprises and green development, it said in a quarterly report on monetary policy implementation.

China previously announced that it would strive to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060. To this end, the country has introduced market-oriented tools such as the trading of carbon emissions.

The central bank will maintain a prudent monetary policy that is flexible, precise, reasonable and moderate and give priority to supporting the real economy, the report said, adding that it will walk a fine line between economic recovery and risk control.