DBS first Southeast Asian FI to be selected by China's central bank to boost green lending for sustainable development
Singapore, Regional.09 Feb 2023
Appointment enables DBS to offer low-cost loans to help accelerate decarbonisation in the world’s second-largest economy
Singapore, Regional, 09 Feb 2023 - DBS is the first Southeast Asian bank chosen by the People's Bank of China (PBOC) to participate in its Carbon Emission Reduction Facility. Under the programme, China’s central bank will extend low-cost funding to DBS Bank (China) Limited
(DBS China) which sits on a select panel of financial institutions. This enables DBS China to offer low-cost loans to fund sustainable development projects in key sectors including clean energy, energy saving, environmental protection, and carbon emission reduction technologies.
As the world’s largest energy consumer and carbon emitter, China has set ambitious net zero targets. It aims to peak carbon emissions before 2030 and achieve carbon neutrality before 2060. Meeting these goals requires significant investment and backing of green projects, as seen by a strong demand for financing.
Through the programme, PBOC will provide financial institutions with funds equal to 60% of a loan's principal at an annual interest rate of 1.75%. It will also guide financial institutions to provide carbon emission reduction loans to enterprises in key areas of decarbonisation, on the premise of independent decision-making and risk-taking. As of September 2022, loans valued at over RMB 400 billion were made via the policy tool. In January 2023, the PBOC announced an extension of the initiative until the end of 2024. Select local and foreign financial institutions will also be allowed to participate in the programme.
Ginger Cheng, CEO of DBS Bank (China) Limited, said: “China is a world leader in transition investment, with over USD 546 billion—nearly half the global total—deployed to fund low-carbon technologies in 2022[1]. This underscores the country’s strong emphasis on sustainable development, and echoes DBS’ commitment to net-zero carbon emissions by 2050. We are honoured that DBS is the first Southeast Asian bank chosen to support China’s green transition. Our participation in the central bank’s carbon reduction facility enables us to ramp up direct financing towards lower-carbon activities, which can in turn help to accelerate China’s green transition.”
By banking with DBS China, customers will be able to leverage its expertise in green financing including sustainability-linked loans, green loans, sustainable development bonds, socially responsible bankers' acceptances, and sustainable trade finance. Companies will also be able to tap the bank’s suite of digital tools, innovation and ESG (environmental, social and governance) capabilities to accelerate their green transformation.
[1] https://about.bnef.com/blog/global-low-carbon-energy-technology-investment-surges-past-1-trillion-for-the-first-time/
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 14 consecutive years from 2009 to 2022.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
(DBS China) which sits on a select panel of financial institutions. This enables DBS China to offer low-cost loans to fund sustainable development projects in key sectors including clean energy, energy saving, environmental protection, and carbon emission reduction technologies.
As the world’s largest energy consumer and carbon emitter, China has set ambitious net zero targets. It aims to peak carbon emissions before 2030 and achieve carbon neutrality before 2060. Meeting these goals requires significant investment and backing of green projects, as seen by a strong demand for financing.
Through the programme, PBOC will provide financial institutions with funds equal to 60% of a loan's principal at an annual interest rate of 1.75%. It will also guide financial institutions to provide carbon emission reduction loans to enterprises in key areas of decarbonisation, on the premise of independent decision-making and risk-taking. As of September 2022, loans valued at over RMB 400 billion were made via the policy tool. In January 2023, the PBOC announced an extension of the initiative until the end of 2024. Select local and foreign financial institutions will also be allowed to participate in the programme.
Ginger Cheng, CEO of DBS Bank (China) Limited, said: “China is a world leader in transition investment, with over USD 546 billion—nearly half the global total—deployed to fund low-carbon technologies in 2022[1]. This underscores the country’s strong emphasis on sustainable development, and echoes DBS’ commitment to net-zero carbon emissions by 2050. We are honoured that DBS is the first Southeast Asian bank chosen to support China’s green transition. Our participation in the central bank’s carbon reduction facility enables us to ramp up direct financing towards lower-carbon activities, which can in turn help to accelerate China’s green transition.”
By banking with DBS China, customers will be able to leverage its expertise in green financing including sustainability-linked loans, green loans, sustainable development bonds, socially responsible bankers' acceptances, and sustainable trade finance. Companies will also be able to tap the bank’s suite of digital tools, innovation and ESG (environmental, social and governance) capabilities to accelerate their green transformation.
[1] https://about.bnef.com/blog/global-low-carbon-energy-technology-investment-surges-past-1-trillion-for-the-first-time/
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About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 14 consecutive years from 2009 to 2022.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
