China unveils “green finance zones” to promote sustainable development
In a campaign toward anti-pollution and industrial growth, People’s Republic of China introduces five pilot zones for green finance last Monday, June 26, with at least 3 trillion yuan planned for the project.
According to the People’s Bank of China, the five pilot zones will be constructed in the provinces of Guangdong, Guizhou, Jiangxi, and Zhejiang, as well as the western part of Xinjiang Autonomous Region. Several plans include focus on supporting energy conservation and emission reduction in Guangzhou. Guizhou’s rural area, on the other hand, will emphasize on financing the treatment of agricultural waste while Xinjiang is expected to strengthen cooperation with overseas financial institutions.
"The key to developing green finance is to balance environmental and economic benefits by endowing green economies with effective financial support to achieve sustainable development," Chinese Premier Li Keqiang said.
The green finance project is projected to require an approximate 3-4 trillion yuan ($440 billion - $588 billion) budget every year over the next five years to meet its environmental commitments.
The green finance project is just one of China’s policies towards its “war on pollution.” Now on its fourth year, the country has been consistently trying to reverse the environmental damage brought by its booming economic growth. China claimed the title as the “largest solar energy producer” in the world. Last January, China reportedly cancelled 104 new coal plants across 13 provinces, while the first “forest city” designed to fight pollution and climate change is currently being constructed in Guangxi Province.