China's central bank has added two foreign banks to its carbon emission reduction supporting tool to assist with the country's green push and further open up the financial market, it announced in a notice on Friday.

The People's Bank of China (PBOC) has named Deutsche Bank (China) and Societe Generale (China) as financial institutions that are eligible to apply for the low-cost loans it provides, according to the notice.

"This move demonstrates that China attaches great importance to green transformation, consistently sticking to opening-up, treats foreign financial institutions equally, grants them national treatment, and supports their development in China," the notice said.

Under the carbon-reduction mechanism, the PBOC provides low-cost funding to financial institutions that lend to enterprises in key carbon emission reduction sectors.

The interest rate on the loans made by financial institutions is roughly in line with the benchmark lending rate, or the loan prime rate (LPR). The PBOC provides 60 percent of the loan principal with an interest rate of 1.75 percent.

The central bank is considering adding more foreign institutions to its lending tool, the notice added.

As one of the world's largest carbon emitters, China is targeted to peak its carbon emissions by 2030 and become carbon-neutral by 2060. Apart from issuing carbon-reduction loans, the country also established a national carbon market last February to support its goals.