Core Viewpoint - The rapid growth of green loans in China is supported by the People's Bank of China's recent report, highlighting the importance of green finance in economic transformation and environmental sustainability [1]. Credit Supply Increase - China's financial institutions are enhancing the quality of financial supply for green transformation, with a focus on increasing credit supply to green sectors [2]. - The People's Bank of China encourages financial institutions to optimize credit supply, with a significant portion of new loans directed towards green and low-carbon development [2]. - As of July, the balance of green loans at China Construction Bank exceeded 5.74 trillion yuan, accounting for over 20% of total loans [2]. Green Loan Growth - By the end of 2021, the balance of green loans was 15.9 trillion yuan, which increased to 43.51 trillion yuan by the third quarter of 2025, marking a 17.5% growth since the beginning of the year [3]. - The increase in green credit supply is expected to extend the coverage of green finance and promote low-carbon development in key industries [3]. Product Innovation - Financial institutions are innovating in the carbon market, providing diverse green financial products to support low-carbon development [4]. - The introduction of carbon pledge financing allows companies to use carbon emission quotas as collateral for loans, representing a significant advancement in green finance [4]. Carbon Pledge Financing - Carbon pledge financing is a key form of carbon finance, integrating carbon markets with financial markets, and enhancing the financial functionality of carbon assets [5]. - The participation of securities firms in carbon trading can improve price discovery and market liquidity, benefiting the overall carbon market [6]. Transition Finance - Transition finance is emerging to support high-carbon industries in their green transformation, addressing their unique financing needs [7]. - The core mission of transition finance is to provide necessary funding for low-carbon transitions, preventing high-carbon assets from becoming stranded [7]. Enhancing Green Financial Services - Banks are encouraged to improve green financial services to facilitate the low-carbon transition of traditional industries [8]. - New financing channels, such as linking loan costs to environmental performance, are being explored to incentivize emissions reduction [8]. Information Disclosure Improvement - There is a need to enhance the quality of information disclosure for transition finance, with clear requirements for financing entities to develop transition plans [9].