Beijing loosens curbs on foreign capital for some green projects

China is easing restrictions on the amount of foreign capital that companies can raise for climate-related projects, as the country seeks to curb greenhouse gas emissions and bolster its economy.

A pilot program across 16 provinces and major cities, including Shanghai and Beijing, will ease quotas for domestic non-financial firms to borrow from non-residents in local and foreign currency, provided those projects are aimed at reducing corporate emissions, the country's foreign exchange regulator said late on Thursday.

"Green or low-carbon transition projects are permitted to occupy a smaller proportion of foreign debt risk-weighted balances," said Lei Wang, head of analytical excellence and research for S&P Global (China) Ratings. "While specific ratios have not yet been disclosed, this measure effectively reduces financing costs for green projects."