Lobby Letter to PBOC on the Carbon Emission Reduction Facility Framework

2021-11-29 | Beijing, Shanghai

On Nov 29th, European Union Chamber of Commerce in China (EUCCC) and the European Banking Federation (EBF) sent a lobby letter to PBOC regarding the carbon emission reduction facility framework. According to the recent announcement by the PBOC on 8 November 2021, financial institutions can apply for support from the central bank after issuing carbon emission reduction loans; the central bank provides financial support to financial institutions at 60% of the loan principal, with interest rates at 1.75%, the term is 1 year, and it can be extended twice. European Chamber and EBF recommended that granting EU banks the opportunity to also immediately benefit from this facility framework will not only allow EU corporates and banks to fully support China’s carbon neutrality goals but will also confirm China’s commitment to ensure a fair and transparent market access to all companies.