China’s central bank to extend low-carbon loan program through 2027

China's central bank will extend its low-cost loan program for carbon reduction projects until the end of 2027, the government announced on Sunday. 

The People's Bank of China (PBOC) introduced the scheme in 2021 to support companies in cutting carbon emissions. 

Under the program, banks can receive up to 60% of the principal for eligible loans at a one-year lending rate of 1.75%.

The plan includes commitments to promote battery-powered vehicles, energy- and water-efficient home appliances, and the use of more eco-friendly building materials. 

It reaffirms China’s target to increase the share of non-fossil energy consumption to around 25% by 2030.

In a broad policy announcement lacking detailed implementation plans, China also pledged to create tax and investment policies to support what Beijing describes as a "green transformation" of the world's second-largest economy.

The plan announced on Sunday sets the goal for China to transition its economy to a "fully green and low-carbon track" by 2035, aiming for reduced carbon emissions by that time.