The role of banks in China’s green transition: Bigger, or Bitter?
                                    
                                        China’s green finance had surged from 2020 to 2024 thanks to announcement of the dual-carbon target coupled with multiple supportive regulations. With a compounded annual growth rate (CAGR) of 30%, the outstanding balance of green finance has more than tripled during this period. By finance type, green loans contributed the lion’s share of 93% of total growth, while green bonds have also grown, albeit slower, at a 12% CAGR due to the credit meltdown since 2021.However, the momentum has been slowing as green loan growth halved versus 2023 and green bond growth falls further to around 5%. We see...