yi gang : green finance and climate policy opening remarks by mr yi gang, governor of the people's bank of china, at a high - level seminar on " green finance and climate policy ", co - hosted by the people's bank of china and the international monetary fund, 15 april 2021. * * * madame managing director, ladies and gentleman, good morning and good evening. it gives me great pleasure to co - host this high - level seminar on “ green finance and climate policy ” with the imf. i wish to begin by extending a warm welcome to all the participants on behalf of the pbc. the international community is forming a broad consensus on tackling climate change. china has announced the goal of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060, also known as the 30 / 60 goal. this requires a comprehensive economic transition, and green finance can be an accelerator in this process. the pbc attaches great importance to green finance. in 2016, we led the effort in drafting the guidance on building a green financial system and developed a specific timetable and a roadmap for this purpose. by making sure that all the policies are implemented, we have put in place an initial policy framework for green finance. as a result, china ’ s green finance market has since enjoyed fast development. by the end of 2020, green loans and green bonds in china totalled 1. 8 trillion us dollars and 125 billion us dollars respectively, ranking as the world ’ s largest and second largest. more than 40 carbon neutral bonds have been issued, with a total volume of over 10 billion us dollars. the 30 / 60 goal has set a higher bar for the financial sector. to meet this goal, we need to overcome a host of challenges. first, on the society front, public awareness of emission reduction has to be raised. second, on the market front, the carbon market has to play a greater role in price discovery. only when carbon emission is priced in, can we achieve effective resources allocation. china ’ s carbon market is still in its initial stage, and its financial nature needs to be further clarified. third, on the institutional front, climate information disclosure needs to be improved. the disclosure should be expanded to cover listed companies, financial institutions and other market players, and move from a voluntary to a compulsory basis. fourth, on the risk management front, there needs to be greater attention to the fossil fuelrelated transition risks. fossil fuels, mainly coal

the first is the size of the base. china's total gdp has exceeded rmb120 trillion, and the growth of 5 percent is not a low rate against the backdrop of such a large base. the second is to 1 / 6 bis - central bankers'speeches strike a balance between economic growth and its quality and sustainability. a proper economic growth is necessary, but it is more important to achieve high - quality and sustainable development. in brief, transforming the mode of economic growth is more significant than pursuing a high growth rate. second, the pboc has continuously implemented the sound monetary policy to support the stable growth of the real economy. since the beginning of this year, we have strengthened the counter - cyclical adjustments, and used a mix of monetary policy instruments in terms of aggregates, structure, quantity and prices, providing vigorous and effective support for the development of the real economy. in march and september, the required reserve ratio ( rrr ) was lowered twice, injecting medium and long - term ( mlt ) funds exceeding rmb1 trillion. in june and august, the policy rate was cut twice, bringing down the market interest rates such as the loan prime rate ( lpr ) on a continuous basis. in august, we have launched the " policy package " for real estate finance, including lowering the ratio of down payment and the floor on second - home mortgage rates, and improving the standards for identifying whether a property is a " second home ". in addition, we have guided commercial banks to adjust interest rates on existing home loans, helping households save about rmb170 billion every year and benefiting about 50 million households or 150 million people. we have increased the quota for central bank lending to support rural development and micro and small businesses ( msbs ) as well as central bank discounts twice. we have extended the applicable term of six structural monetary policy instruments, including the inclusive msb loan facilities. at present, money and credit aggregates are growing at a proper pace, and the credit structure is continuously improving. the interest rate on corporate loans has maintained at a low level, providing strong and effective support for economic recovery and development. going forward, we will strengthen both inter - temporal and counter - cyclical adjustments for the monetary policies, and strike a balance between short - term and long - term goals, stable growth and risk prevention, as well as internal and external equilibria, thus creating a sound monetary and financial environment for stabili