Many NGOs and social media accounts reposted CCTV’s advocacy article about carbon reduction on June 15, the 7th National Low Carbon Day, explaining to the public environmental concepts such as green carbon, blue carbon, and carbon emissions trading.
The article also introduces the measures China has taken in various fields to achieve its goals of peak carbon by 2030 and carbon neutrality by 2060.
One of the most important actions is the official opening of the China Carbon Emission Trade Exchange (CCETE) last July.
With quotas gradually being tightened, carbon trading prices are expected to rise sharply, which will increase the costs for companies with outdated technology and high emissions, forcing them to improve their technology and reduce their emissions.
Another notable move is the carbon emission reduction loan mechanism (CELM) launched by the People’s Bank of China last November. Over the past six months, a number of major commercial banks have used the mechanism.
According to loan data from the first quarter, China Merchants Bank issued more than 4.3 billion yuan ($ 700 million) in loans to 53 carbon emission reduction projects, the Bank of China loaned 27 billion yuan to 152 projects, and the Postal Savings Bank loaned 5.9 billion yuan to 101 projects.
The projects to have received the most loans have typically involved wind power, solar energy, biomass energy, geothermal energy, smart grids, or the building of integrated photovoltaic systems in rural areas.
After granting a loan to such projects, the commercial banks can apply to the central bank for a one-year loan of 60 percent of the original loan principal, with an interest rate of 1.75 percent, that can be extended twice.
In addition, rapidly evolving technologies such as carbon farming (CF), and carbon capture utilization storage (CCUS) are expected to be an upcoming solution to help various industries in China escape high carbon emissions.