China is accelerating its transition to a green economy, with enhanced financial support measures.

The Central Committee of the Communist Party of China and the State Council are promoting the transition to a green economy and have proposed multiple financial support measures. These include extending the term of carbon reduction support tools, formulating standards for transition finance, and encouraging banks to allocate green credit. Local governments are encouraged to reduce the costs of green bonds and to develop green equity, financing leases, trusts, and more. Additionally, efforts are being made to innovate carbon financial products, develop green insurance, and explore a differentiated insurance premium rate mechanism.

Explanation:

• Green bonds: Bonds specifically issued to finance environmental projects.
• Carbon reduction support tools: Financial tools that assist companies in reducing carbon emissions.
• Green credit: Loans provided by banks to environmentally friendly projects.