China’s central bank has released a new financial framework aimed at fast-tracking the growth of the country’s forestry sector. The 15-point plan, jointly issued by the People’s Bank of China (PBOC), the National Financial Regulatory Commission, and the National Forestry and Grassland Administration, was published by state media yesterday, detailing measures to strengthen forest asset development and enhance ecological resilience.
Wood Central understands the policy targets five key areas: enhancing financial services for collective forest tenure reform, increasing investment in forestry enterprises, and reinforcing financial safeguards for national forestry strategies.
A central feature of the plan is the expansion of forest rights mortgage lending, which includes broadening the scope of mortgageable forest assets, extending loan terms within legal parameters, and improving loan quality and accessibility. Authorities also aim to streamline financing for national reserve forest projects and support the transition from natural forests to managed forestry systems.
The announcement reflects Beijing’s wider strategy to position forestry as a pillar of sustainable development. At a tree-planting event earlier this year, President Xi Jinping reaffirmed the long-term importance of afforestation, describing it as “a nationwide initiative that must be carried on for generations.”
China has made notable progress in expanding forest coverage, contributing approximately 25 per cent of the world’s new green areas since 2000. In 2024 alone, the country planted 4.45 million hectares of trees and rehabilitated 3.22 million hectares of grassland. The PBOC said future efforts will focus on improving the efficiency of financial services tied to forest tenure reform, with the broader goal of advancing China’s green economy and strengthening its ecological infrastructure.
- To learn more about China’s push to regrow its forest canopies, click here for Wood Central’s special feature from January 2024. And to learn why China is now eyeing Cambodia’s timber plantations for wood supply, click here for Wood Central’s article last week.
