we established a corresponding stress testing framework, and organized 19 domestic systemically important banks ( sibs ) to carry out carbon cost sensitivity stress tests for eight key carbonemitting industries, including electricity, steel, building materials, non - ferrous metals, aviation, petrochemicals, chemicals, and paper - making. in addition, based on regional economic structure and transition policies, we organized banks in some regions to conduct stress tests on climate risks. through these efforts, we've raised the awareness and capabilities of financial institutions to manage climate risks, so they can properly handle the relationship between emission reduction and development, as well as the link between local and overall development, and support the green and lowcarbon transition of the economy in a more reasonable pace and intensity. in this process, we've managed to give full play to the decisive role of market in allocating resources, and better leverage the role of government at the same time. achieving the " 30 - 60 " decarbonization goal requires substantial investment in green transition and green technologies. according to relevant research institutes, the required investment will reach the magnitude of rmb100 trillion. as government funds can cover only a small part of such huge funding demand, social funds will be counted on and mobilized, thus making market play a decisive role in allocating resources, and taping the price discovery and risk management functions of financial instruments to achieve the optimal growth path under constraints. by establishing green finance standards, promoting environmental information disclosure to appropriately improve information transparency, and providing low - cost funds, the financial sector can reduce the cost of social funds invested in green transition and facilitate the development of green finance market. up to date, china has developed a multi - level market system for green finance, in which green loans and green bonds play a dominant role while a variety of green finance instruments are booming. at the end of q1 2023, 3 / 5 bis - central bankers'speeches outstanding china's green loans in domestic and foreign currencies exceeded rmb25 trillion, and outstanding green bonds exceeded rmb1. 5 trillion, both of which rank among the top of the world. fourth, climate change is a global issue, and to properly address this issue requires enhanced international cooperation and coordinated response. president xi jinping pointed out that mankind is a community with a shared future, and protecting the ecological environment is a common challenge and responsibility facing all humanity. we have firmly upheld multilateralism, and proactively participated in

and accuracy of carbon emission data, and only in this way can risks such as " green - washing ", capital arbitrage, and project fraud be prevented, which lays a solid foundation for other carbon emission reduction policies. over the years, we have gradually clarified the environmental information disclosure requirements for financial institutions, and encouraged financial institutions as well as enterprises issuing green bonds to disclose relevant environmental information. the second is to improve the policy incentive and restraint system. we should use " carrot and stick " to attain the " 30 - 60 " decarbonization goal. a significant increase in 2 / 5 bis - central bankers'speeches the cost of carbon emissions can be understood as a " big stick ", a moderate increase is a " medium stick " or a " small stick ", and the facility launched by the pboc is a " carrot " in an incentive mechanism. in 2021, the pboc launched two monetary policy instruments, namely, the carbon emission reduction facility ( cerf ) and the special central bank lending for clean and efficient coal use, to support the development of key areas of carbon emission reduction. for carbon emission reduction loans issued by financial institutions to key areas in the regard, the pboc provides funding for 60 percent of the principal through central bank lending for a certain period of time, with an interest rate of 1. 75 percent, which provides targeted and direct support for green and low - carbon projects. as the central bank lending offered by the pboc to financial institutions should be repaid when they expire, financial institutions who issue carbon emission reduction loans to enterprises need to bear relevant risks on their own. in this sense, the " carrot ", or the incentive, is moderate and market - oriented. at the same time, financial institutions that receive the low - cost funds from the pboc must pledge to disclose such information as the outstanding balance and interest rates of carbon emission reduction loans as well as their effects on carbon emission reduction. besides, they are subject to verification by independent third - party agencies and oversight by the public. by end - april 2023, the cerf, with a balance of around rmb400 billion, had motivated financial institutions to issue over rmb670 billion in loans and facilitated carbon emission cut in the amount of 150 million tons. this is a satisfactory result. the third is to conduct stress tests on climate risks. the pboc attaches great importance to the stress tests on climate risks. in 2021,