China’s Central Bank Calls for Policies to Promote Green Growth

China will improve its financial policies to cut carbon emissions and curb the flow of capital to high-polluting industries, according to an official at its central bank.

The world’s biggest carbon emitter will encourage its banks and companies to participate in “green finance and green industries,” deputy governor Pan Gongsheng said in a statement posted on the website of the People’s Bank of China.

The comments follow President Xi Jinping’s agreement with U.S. President Barack Obama earlier this month to cap China’s carbon emissions by 2030 and turn to renewable sources for 20 percent of the nation’s energy needs. The climate-change accord will require a radical environmental and economic makeover of the world’s second-biggest economy.

China plans to to start nationwide carbon-permit trading in the next two years, Su Wei, an official at the climate change department at China’s top economic planning agency, the National Development and Reform Commission, said yesterday.

— With assistance by Feifei Shen

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