ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Caixin

The green finance challenge facing China's banks

Many institutions unware of the climate risks to their assets, say experts

The vast majority of Chinese financial institutions lack knowledge of climate risks and the opportunities of carbon finance, requiring deeper internal talent pools and greater capacity for acquiring external data, industry experts say.    © Reuters

China's plan to dramatically reduce greenhouse gas emissions over the next four decades will put increasing pressure on a financial system that isn't ready, according to top industry regulators and banking experts.

On the one hand, banks and other financial institutions could benefit from rising demand for tens of billions of yuan of green financing to pay for sweeping changes throughout the economy, according to Ma Jun, a member of the monetary policy committee of the People's Bank of China (PBOC) and director of the Green Finance Committee of the China Society of Finance and Banking.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more