TAIPEI (Taiwan News) — Taiwan’s state-owned banks are ramping up support for renewable energy, with green lending expected to approach NT$2 trillion (US$63.4 billion) this year, CTEE reported Friday.
Outstanding green loans extended by state-owned banks totaled NT$1.9 trillion as of the end of August. Public banks have also invested in 592 renewable energy projects, totaling NT$405.4 billion, including 114 green bond purchases valued at NT$79.8 billion.
Banks are driving ESG development by linking lending and investment decisions to corporate carbon reduction efforts. By directing capital toward low-carbon industries and projects they incentivize companies to adopt net-zero targets, according to Pwc.
Looking ahead, state-owned bank executives said they will deepen ties with existing high-quality clients. The banks also plan to expand lending to industries favored by government policy, including semiconductor supply chains, public infrastructure, and offshore wind projects.
The government is promoting a diversified renewable energy mix, advancing mature technologies such as solar and offshore wind while accelerating geothermal and small hydropower development. Renewable energy is projected to supply 20% of electricity by November, 23.4% by 2028, and around 30% by 2030, according to the Ministry of Economic Affairs.
Banks are also monitoring emerging industry supply chains, focusing on projects with strong returns and potential for additional business opportunities. Land Bank of Taiwan observed that rising environmental awareness has increased demand for funding in green energy, renewable energy, and energy storage industries.
The Bank of Taiwan noted that investments in renewable energy and gas-fired power are expected to sustain financing demand this year. Several banks have launched initiatives to strengthen ESG integration.
First Commercial Bank has advanced green finance by issuing bonds, supporting low-carbon transition plans for enterprises, and integrating ESG considerations into its financing programs, while also considering biodiversity risks in investment decisions.
Meanwhile, Chang Hwa Bank has developed a framework to evaluate climate- and nature-related risks and opportunities across its operations, investments, and supply chain, using these insights to shape forward-looking financing and investment decisions.
In recent years, ESG investing and financing have grown quickly, with banks increasingly treating ESG risks as a key factor in their investment decisions. According to Pwc’s 2021 global investment survey, 79% of investors said a company’s approach to managing ESG risks and opportunities influences their investment choices.
