The People's Bank of China (PBOC), together with the National Financial Regulatory Administration and the National Forestry and Grassland Administration, has issued a notice setting out 15 measures to strengthen financial support for high-quality forestry development, with a focus on deepening reforms to the collective forest rights system, increasing funding for key forestry and ecological strategies, and improving supporting policy and risk management arrangements. The package promotes expanded and more standardised forest rights-backed lending, including broadening eligible collateral to cover certain young timber forests and other forest assets (such as bamboo forests, fruit trees, facility flowers and seedlings), extending loan maturities on a lawful and compliant basis, and exploring financing linked to forestry operating income rights and under-forest space operating rights. It also encourages the establishment (where conditions allow) of forest rights reserve and storage institutions, greater use of private capital in reserve and storage guarantee services, unified valuation standards with clearer procedures and fee standards, stronger rules for managing and disposing of pledged forest rights, and more efficient mortgage registration alongside forestry databases and trading platforms to support orderly market-based transfers. Beyond lending, the notice calls for wider use of structural monetary policy tools (including relending, rediscounting, the carbon emission reduction support tool, and the relending facility for technology innovation and equipment upgrades), expanded direct financing channels for forestry enterprises (including bond issuance), development of a forest insurance product system (index, yield, income and liability insurance), and a “five-in-one” risk management mechanism for forest rights mortgage loans covering valuation, insurance, supervision, disposal and reserve and storage. Next steps set out in the notice include the PBOC working with the other agencies to drive implementation, improve government–bank–enterprise financing matchmaking, and summarise and promote typical practices.
Central Bank of the Republic of China 2025-08-15
People's Bank of China, National Financial Regulatory Administration and National Forestry and Grassland Administration set out 15 measures to scale up finance for high-quality forestry development
The People's Bank of China, with the National Financial Regulatory Administration and the National Forestry and Grassland Administration, announced 15 measures to boost financial support for high-quality forestry development. Initiatives include expanding forest rights-backed lending, broadening eligible collateral, and promoting private capital in reserve and storage services. The notice also emphasizes using structural monetary policy tools and developing a comprehensive forest insurance product system.