AFD is supporting the funding of low-carbon-compatible investment and the development of specific expertise in green finance through a partnership with three Chinese banks. The goal is to contribute to the fight against climate change by increasing funding for green projects.
Context
In the mid-2000s, private investments in energy efficiency and renewable energy in China only accounted for approximately 6% of investments in the energy sector.
In recent years, the Chinese government has adopted a significant number of regulations and guidelines promoting green finance activities. AFD was one of the first donors to enter a partnership with Chinese banks to promote this type of investment.
Description
In 2007, AFD initiated a partnership with three Chinese banks–Shanghai Pudong Development Bank (SPDB), Huaxia Bank and China Merchants Bank (CMB)– through two “green” credit lines to finance companies investing in the sectors of energy efficiency and renewable energy in China.
These credit lines are further supported by technical assistance. With support from the French Global Environment Facility (FFEM), a group of Franco-Chinese experts specialized in green energy advised the banks and their customers in process of Facility (FFEM) project selection, technology to be used and the analysis of the energy efficiency forecast. Another component of this program, handled by the partner banks, is the development and reinforcement of their teams’ specific skills in this area.
Impacts
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90 energy efficiency and renewable energy projects in 22 Chinese provinces benefited from AFD funding;
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The project relied on high-level, Franco-Chinese expertise to strengthen skills in green finance in the banking sector;
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Close to 9,000 bankers have received training on climate issues.
20/12/2007
Project start date
15/06/2020
Project end date
10 years
Financing tool
180 600 000
EUR
Achevé
Huaxia Bank
SPDB
China Merchants Bank
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on the same region
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on the same topic
BiodiversityClimateConserving island ecosystems and reducing their vulnerability to climate change
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on the same financial tool
