With the concerted efforts of the project leader and student research assistants, and the support of the Centre, the project finally produced a research report in early 2025 after more than four months of data collection and analysis. This study estimates two types of investment and financing activities for 19 major banks in Chinese mainland. Given the availability of industry carbon emission factor estimation data and in line with the estimation years of other financing carbon emission reports in the industry, this report estimates the financing emissions of commercial loans and residential mortgages for 12 industries in December 2021.
- Commercial loan financing is related to emissions.
The financed emissions from commercial loans across 12 industries amounted to 4.806 billion tonnes of CO₂ equivalent, with an average emission intensity of 546.36 tonnes of CO₂ equivalent per million US dollars. The total commercial loans issued in these industries in 2021 reached USD 8.7963 trillion. The four industries with the highest commercial loans in Chinese mainland in 2021 were manufacturing, transportation, leasing and commercial services, and real estate. The top four sectors in terms of financed emissions were manufacturing, energy production and supply, transportation, and construction.
- Residential mortgages are related to emissions.
In 2021, the financed emissions from residential mortgages totalled 156.26 million tonnes of CO₂ equivalent, with an average emission intensity of 30.33 tonnes of CO₂ equivalent per million US dollars. The total residential mortgage loans issued by 19 major banks in Chinese mainland amounted to 5.15278 trillion yuan. In 2021, the top four banks with the highest residential mortgage loans were China Construction Bank, Industrial and Commercial Bank of China, Agricultural Bank of China, and Bank of China. Consequently, these four banks also had the highest financed emissions from residential mortgages.
Students Feedback
"In this project, I conducted an in-depth study of the concepts and applications of carbon finance, gaining a more comprehensive understanding of carbon emissions across various sectors in China. This experience not only broadened my knowledge but also became a key highlight in my postgraduate program application, significantly contributing to my successful offer. At the same time, it sparked a strong interest in the ESG field, providing new direction for my future career development."
——Binru YE, Y4, FAM
"This valuable research experience at CRBI not only trained my proficiency in using the Bloomberg Terminal for ESG data collection and analysis, but also deepened my understanding of ESG rating methodologies and financed emissions. Furthermore, it sparked my interest in sustainability and ESG, helped me define my research interest and career path. Additionally, my successful application to NUS MSc Sustainable and Green Finance could not have been achieved without the help of participating in this programme."
——Aoyu DONG, Y4, ECON
"My experience as an ESG Finance RA at CRBI was a valuable opportunity for me to quickly gain knowledge in ESG finance and improve my academic research skills. By extensively reading industry reports and participating in two training sessions, I successfully built a framework of knowledge on ESG finance and financial carbon emissions, deepening my understanding of ESG in both the industry and academia. As a first-time RA, this experience not only enhanced my ability to find and read literature, but also strengthened my skills in using financial databases, data collection and organisation, and report writing, laying a solid foundation for my future empirical research."
——Guoxi XIANG, Y3, ECON
"I am extremely grateful to CRBI for giving me the opportunity to serve as a Research Assistant. The focus of this research—ESG and carbon emission regulation—is a highly topical and valuable subject. This experience has not only honed my ability to gather literature but also taught me how to extract key information and select valuable references from it. I highly recommend joining CRBI to take part in RA work."
——Hanbin JIANG, Y3, ECON
This ESG Finance research project not only yielded a set of impactful and practical data but also immersed student research assistants in a rich learning experience that seamlessly integrated academic knowledge with real-world application. From Dr Ying Jiang's in-depth exploration of ESG core areas to Dr Liang Dong's meticulous analysis of financial carbon emissions, each phase reflected the students' enthusiasm and the faculty's commitment. Equipped with cutting-edge knowledge and skills from the training, students are now better prepared to engage in future academic and research endeavors.
Read More: https://mp.weixin.qq.com/s/PzZmoLfgjEbJxyNfgfsppQ