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China Warns of ‘Moral Hazard’ Risks as Green Financing Booms

The People’s Bank of China said it will guard against “moral hazards” such as greenwashing and sustainable project fraud as it expands its use of green monetary policy to drive the nation’s energy transition.

In a rare interview conducted in English with a state broadcaster, Governor Yi Gang warned against the “greenwashing, low-cost fund arbitrage, and green project fraud” that has been on the rise alongside the influx of sustainable capital in recent years.