China to promote financial support for green factory construction

 China's Ministry of Industry and Information Technology and the People's Bank of China have jointly released a notice, aiming to establish and improve the working mechanism for green finance to support green factories.

China's green factories play a vital role in the green manufacturing process. The output of China's green factories accounts for more than 20 percent of the country's manufacturing value, according to official data. So far, China has cultivated about 6,430 national-level green factories.

The notice, made public on Friday, is designed to encourage financial institutions to develop financial products that support green manufacturing and increase investment in areas such as energy conservation, low-carbon development, water conservation, environmental protection and utilization of resources in green factories, said Wang Peng, an official with the ministry.

Support will focus on key areas such as research and development and industrialization projects, technological transformation and upgrading projects, and zero-carbon factory construction projects, according to the notice.

The document also specifies that work plans for green finance support to green factories will be formulated and refined. Efforts will focus on strengthening green credit support, broadening direct financing channels, and backing qualified enterprises in issuing green bonds and transition bonds.