Quzhou's carbon account finance was presented as a local practice case for climate change policy and action during COP27 – or the 27th Conference of the Parties to the United Nations Framework Convention on Climate Change – recently held in Egypt.

Quzhou in East China's Zhejiang province is leading the exploration of digital carbon control. The city has established carbon accounts for over 2.34 million enterprises and individuals and developed financial products based on the carbon account.

The flow diagram of the 5e closed-loop system for carbon account finance launched by Quzhou. [Photo/qz123.com]

With the help of the 5e closed-loop system for carbon account finance, the formatted disclosure of financial institutions' carbon emission information can be achieved through a quantifiable assessment model, standardized assessment tools and formatted disclosure template.

At the end of the third quarter, 28 financial institutions in the city disclosed carbon emissions information in their environmental information disclosure reports for the third quarter of 2022.

Since the carbon account system was launched in 2021, the city has granted more than 40 billion yuan ($5.6 billion) in loans to low-emitting enterprises at low interest rates.