HSBC will lend $4 billion to China to scale up clean technology globally

HSBC launched a $4 billion credit facility on Monday to'support 'the global expansion of mainland Chinese firms involved in sustainable and transformation technologies such as clean power, data centers, electric vehicles, and AI.

China is already the largest exporter in the world of solar and batteries technology. It has been a leader in the?deployment? of green technologies to reduce emissions and has taken a strategic approach to expand markets and influence worldwide.

HSBC has created the Sustainability and Transition Credit Facility as the Iran War drives demand for renewable energy like wind and solar, which is often cheaper than fossil fuels.

HSBC's research indicates that global electric vehicle sales will pass 26 million by 2026. The International Energy Agency estimates that electricity consumption from data centres may nearly double to 945 terawatt-hours by 2030.

HSBC announced in a press release that as part of the new facility it would extend credit terms and streamline credit approvals?and create tailored solutions for companies eligible.

Natalie Blyth is the global head of sustainable financing and transition at HSBC. She said that China has "some of 'the most dynamic low carbon companies' in the world" who are "setting new standards in high-end manufacture."

As?they grow internationally, they will need partners who have the expertise and global reach to help them. Blyth said that this facility was designed to "provide" exactly that.

A December report from the Australian research group Climate Energy Finance revealed that Chinese companies have invested more than $180 Billion in overseas clean tech since 2023. Mark Porter edited this article.

(source: Reuters)