To thoroughly implement the decisions and plans of the CPC Central Committee on strengthening financial services for the real economy and to further establish and improve the working mechanism for green finance to support green factories, the Ministry of Industry and Information Technology and the People's Bank of China recently jointly issued the "Notice on Making Good Use of Green Finance Policies to Support the Construction of Green Factories".

The following is a selection of key content from the magazine "China Rubber" for reference by industry enterprises.

Key support areas

The program prioritizes supporting investment projects implemented by national green factories that adopt green and low-carbon technologies listed in the "Green Finance Support Project Catalogue (2025 Edition)" issued by the People's Bank of China and other three departments, as well as in the policy plans and technology catalogues of relevant national departments. The aim is to improve enterprises' green development levels in areas such as low-carbon energy, efficient resource utilization, clean production, green products, and intensive land use.

There are three main categories:

(I) Research and Development and Industrial Application Projects. Priority support will be given to major green and low-carbon process innovations in traditional industries, key technologies and equipment that are bottlenecks, and projects for tackling and industrializing these technologies and equipment, as well as research and development and application projects for new technologies, new products and new models in the green and low-carbon industry.

(II) Technological Transformation and Upgrading Projects. The focus is on supporting enterprises to implement green and low-carbon transformation and upgrading projects such as energy conservation and carbon reduction, water conservation and pollution reduction, resource recycling, clean raw material and fuel substitution, environmental protection equipment upgrading, digital and green collaborative upgrading, as well as industrial green microgrids, digital energy and carbon management centers, and green data centers.

(III) Zero-carbon factory construction projects. Priority support will be given to projects that are national green factories that explore carbon reduction potential and carry out zero-carbon factory construction.

Strengthen supply and demand matching

Provincial-level industry and information technology authorities organize green factories to submit their project financing needs online through the Industrial Energy Conservation and Green Development Management Platform, and review the compliance of the projects and the financing needs. The applications are then submitted to the Ministry of Industry and Information Technology before the last working day of each quarter. If there are significant project financing needs, they can be submitted at any time.

The Ministry of Industry and Information Technology (MIIT) forwards financing needs and related information to the People's Bank of China (PBOC), which then disseminates this information to PBOC branches and financial institutions through the credit market service platform. PBOC branches actively organize financial institutions to connect with projects or enterprises within their jurisdictions that have financing needs, providing financial support according to market-oriented and rule-of-law principles, and promptly reporting on the connection status. For financing obstacles reported by financial institutions, the relevant MIIT departments at all levels and PBOC branches actively coordinate and resolve them.

Increase financial support

Support financial institutions in formulating work plans for green finance to support green factories, identify relevant responsible departments, clarify key areas for green finance to support the construction of green factories, optimize the approval process for green factory business, and improve the approval efficiency of key projects.

Financial institutions are encouraged to reasonably determine loan terms and repayment cycles based on the characteristics of green factory funding, develop products such as loan renewals without principal repayment and medium- and long-term loans, and increase credit allocation for green factory project construction.

Support eligible enterprises in issuing green bonds and transformation bonds to raise funds for increased investment in green factory construction, and encourage financial institutions to provide supporting services such as underwriting and investment for green bond issuance. Encourage local governments to include high-potential, high-quality green factories in their bond issuance project pools, strengthen their cultivation and guidance, and promote more enterprises to raise funds in the interbank bond market and exchange bond market.

Optimize the selection and cultivation mechanism for green factories, and promote the transformation from benchmarking to large-scale promotion. Make good use of existing structural monetary policy tools to incentivize and guide financial institutions to increase lending. Improve the risk-sharing mechanism, encourage local governments to establish fiscal interest subsidy or risk compensation funds, and guide policy-oriented financing guarantee institutions to provide credit enhancement services for green factories. Explore providing appropriate rewards to financial institutions that perform outstandingly in supporting green factories through methods such as preferential bidding for fiscal funds.