To achieve low-carbon and sustainable development, it is widely deemed necessary to use financial means to optimize resource allocation and Baotou city – located in North China's Inner Mongolia autonomous region – is said to be playing its part.

Since 2021, the Baotou Financial Office has promoted the three major areas of energy supply, energy consumption and carbon sink absorption in the banking industry. What's more, financial institutions within its jurisdiction have helped Baotou build a green and low-carbon city.

The Industrial and Commercial Bank of China Baotou Branch, for one, successfully issued a 10 million yuan ($1.57 million) carbon sink trading working capital loan for Baogang Group in the city. In terms of the carbon transformation business, the bank is viewed to have played an exemplary and leading role.

Elsewhere, Industrial Bank and Huafu Securities, a subsidiary of Industrial Bank, completed special carbon-neutral bookkeeping issuance for the group, becoming the first carbon-neutral green bond in the steel industry in Inner Mongolia, with a total issuance size of 3.38 billion yuan.

In addition, the Agricultural Bank of China Baotou Branch, the Bank of China Baotou Branch and China Construction Bank Baotou Branch also provided 8.83 billion yuan in credit support for green and environmental protection companies.

The successful practice of green finance in the city has reportedly strengthened Baotou's confidence in accelerating green and low-carbon development, with the help of financial power.

Moving forwards, the finance office is expected to continue to promote financial institutions within its jurisdiction, to explore and develop innovative green financial products around the strategy of peak carbon and carbon neutrality.