Ex-IMF Official Urges China to Add Carbon to Monetary Goals
“China’s financial industry must fully realize the strategic significance of carbon neutrality,” the Times cited Zhu as saying.
(Bloomberg) -- China should take into account carbon neutrality goals when setting monetary policies, local media Securities Times cited Zhu Min, a former deputy managing director of the International Monetary Fund, as saying at a forum on Sunday.
The Chinese central bank should be innovative and it should evolve to add carbon neutrality as the third pillar of its monetary policy goals, on top of stabilizing prices and supporting economic growth, said Zhu, who is now chairman of the National Institute of Financial Research at Tsinghua University, at the New Financial Forum in Beijing.
“China’s financial industry must fully realize the strategic significance of carbon neutrality, the possible financial risks of carbon-neutral transformation and the financial opportunities of carbon-neutrality,” the Times cited Zhu as saying. China should take the initiative to build a world-leading zero-carbon financial system, he said.
The People’s Bank of China has been taking steps to help meet the nation’s goal of becoming carbon neutral by 2060. In November, the central bank pledged cheap loans to companies in clean energy, energy-saving and environment-friendly sectors, as well as those with carbon emission reduction technology. It also allocated more than 200 billion yuan ($31 billion) in financing for the so-called clean coal projects at preferential rates.
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With assistance from Bloomberg