BEIJING -- China's first carbon sink loan totaling 18 million yuan (about $2.77 million) was issued by the Industrial Bank Co Ltd on Wednesday.

The loan was granted to a company managing the coastal wetland in Jiaozhou Bay in Qingdao, East China's Shandong province, and will be used for purchasing crops with higher carbon uptake capacity on wetland for ecological conservation, according to the bank.

The issuance of the loan took into account an overall analysis on the wetland's carbon sequestration capacity as a fundamental factor, and the loan amount was calculated based on the transaction prices in the national carbon market, with the wetland's long-term income right from carbon trading as collateral, the bank said.

China has announced that it will strive to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060.