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Loan Agreement Signed with China for the climate
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An AFD loan of €27 M to the Chinese Ministry of finances was signed to finance a biomass cogeneration project - generating two forms of energy in the same power plant - in the county of Pianguan in Shanxi province. It's the second-largest region in China, and the world, in terms of coal production.
The project is fully aligned with AFD’s strategy in China. One of the main priorities is to accompany the country’s low carbon transition strategy by promoting the most innovative aspects of the energy transition.
Located in a province selected by the government to pilot the energy, social and low-carbon transition, the project will contribute to national targets in terms of peak emissions (2030) and carbon neutrality (2060). Moreover, the enhancement of agricultural and shrub (caragana) biomass will contribute to the local economic development with the creation of dozens of jobs for its operation, including about thirty jobs dedicated to women.
More generally, this project is a concrete and operational illustration of the implementation of French-Chinese cooperation agreements in the fields of climate change and environment protection. The exemplarity of this project in terms of environmental and social impacts will foster the development of this type of energy in China.