A bank in Nantong, in China’s Jiangsu province. Banks might have to ensure that there will be buyers for carbon quotas before they start lending to borrowers, to make sure that they can monetarize these assets in the case of a default, an analyst says. Photo: Reuters
A bank in Nantong, in China’s Jiangsu province. Banks might have to ensure that there will be buyers for carbon quotas before they start lending to borrowers, to make sure that they can monetarize these assets in the case of a default, an analyst says. Photo: Reuters

As China pushes for use of carbon quotas as loan collateral, banks seek more clarity about creditors’ rights

  • China’s national emissions trading scheme has made US$32.9 billion worth of carbon quotas available for use by banks as collateral
  • It may be difficult for banks to resell quotas when they need to monetise them, analyst says

Topic |   Climate change
A bank in Nantong, in China’s Jiangsu province. Banks might have to ensure that there will be buyers for carbon quotas before they start lending to borrowers, to make sure that they can monetarize these assets in the case of a default, an analyst says. Photo: Reuters
A bank in Nantong, in China’s Jiangsu province. Banks might have to ensure that there will be buyers for carbon quotas before they start lending to borrowers, to make sure that they can monetarize these assets in the case of a default, an analyst says. Photo: Reuters
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