Nature Related Sustainable Finance in China 2025

While green bonds have attracted significant global attention as a key instrument for financing sustainable projects – and China’s green bonds market has already demonstrated strong performance on the global stage – green loans play a more dominant role in China’s green finance landscape.30 The development model is characterized by China’s bank-led approach, guided by policy, which continues to help mobilize capital towards the national sustainable development goals.31 By the end of 2024, China’s green loan balance had reached RMB 36.6 trillion ($5.14 trillion), accounting for 14.31% of total loans, with an impressive 21.7% year-on-year growth (see Figure 9). In terms of sectoral distribution, green loans in China are heavily concentrated in climate and energy-related sectors , together accounting for 83.6% of the total green loan balance. This includes: RMB 15.68 trillion in green infrastructure upgrades, RMB 9.89 trillion in clean energy projects and RMB 5.04 trillion in energy conservation and environmental protection. In contrast, financing for other nature-related activities, such as biodiversity conservation and ecosystem restoration, remained modest.322.3 Green loans Green loans in China (RMB trillion) FIGURE 9 5101520253040 35 08.58.210.211.915.9203036.6 2018 2019 2020 2021 2022 2023 2024 2017 Source: Based on People’s Bank of China public report. 15