A report by the European Central Bank (ECB) found that Eurozone banks are charging high emitters with higher interest rates. These findings are supported by two studies conducted by the Dutch central bank De Nederlandsche Bank (DNB). The findings from the ECB and DNB show that climate-related risks are increasingly a factor in pricing in Europe’s financial markets. This could incentivise companies to pursue decarbonisation and implement transition plans. In China, the People’s Bank of China (PBOC) announced an extension to a programme that provides financial institutions with low-cost loans for emissions-reduction projects. First launched in 2021, the programme will run until the end of 2027. The PBOC has also stated plans to develop tax and investment policies for China’s climate transition. This includes promoting the use of electric vehicles, energy and water-saving home appliances, and environmentally friendly building materials.
