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and innovations in financial instruments. This section is dedicated to
analysing how traditional financial market instruments could more
effectively provide financial support for local governments to develop
low carbon economy.
Traditional Credit
At present, bank loans are the main financing channels for Chinese
enterprises with the loan balance of financial institutions in 2011
standing at RMB 54.8 trillion. In the credit market, banks actively
strengthen credit support for an energy-saving and low carbon
economy, as well as environmental protection. The number of
energy-saving and environmental protection projects supported
by the banking sector in 2011 registered a year-on-year growth of
28.79 per cent (loan balance for these projects grew by 25.24 per cent)
and loans for strategic emerging industries stood at RMB 363.46 billion,
recording an increase of 36.5 per cent (Yang 2011). The increase in the
loan balance of 2011 in the banking financial institutions for energy
saving and environmental protection was greater compared to that
of 2010, surpassing the increase of loan balance of the previous year
(as shown in Figure 2.7). By the end of 2011, the relevant loan balance
of six financial institutions including the National Development Bank,
Industrial and Commercial Bank of China, Agricultural Bank of China,
Bank of China, China Construction Bank, and Bank of Communications
stood at more than RMB 1.9 trillion. According to statistics, loans for
energy-saving and environmental protection projects by financial
institutions in 2009 stood at RMB 856 billion, accounting for
Figure 2.7 Increase of Green Loan Balance and Total Loan Balance of Financial Institutions (2010–11)
Source Financial Statistical Report of the People’s Bank of China; China Banking Association’s Annual
Social Responsibility Report of China Banking Industry
112 Low Carbon Development in China and India
analysing how traditional financial market instruments could more
effectively provide financial support for local governments to develop
low carbon economy.
Traditional Credit
At present, bank loans are the main financing channels for Chinese
enterprises with the loan balance of financial institutions in 2011
standing at RMB 54.8 trillion. In the credit market, banks actively
strengthen credit support for an energy-saving and low carbon
economy, as well as environmental protection. The number of
energy-saving and environmental protection projects supported
by the banking sector in 2011 registered a year-on-year growth of
28.79 per cent (loan balance for these projects grew by 25.24 per cent)
and loans for strategic emerging industries stood at RMB 363.46 billion,
recording an increase of 36.5 per cent (Yang 2011). The increase in the
loan balance of 2011 in the banking financial institutions for energy
saving and environmental protection was greater compared to that
of 2010, surpassing the increase of loan balance of the previous year
(as shown in Figure 2.7). By the end of 2011, the relevant loan balance
of six financial institutions including the National Development Bank,
Industrial and Commercial Bank of China, Agricultural Bank of China,
Bank of China, China Construction Bank, and Bank of Communications
stood at more than RMB 1.9 trillion. According to statistics, loans for
energy-saving and environmental protection projects by financial
institutions in 2009 stood at RMB 856 billion, accounting for
Figure 2.7 Increase of Green Loan Balance and Total Loan Balance of Financial Institutions (2010–11)
Source Financial Statistical Report of the People’s Bank of China; China Banking Association’s Annual
Social Responsibility Report of China Banking Industry
112 Low Carbon Development in China and India
