Approved a US$200 million loan! ADB helps Ningbo develop low-carbon economy
The Asian Development Bank (ADB) recently approved a US$200 million loan to promote the inclusive, low-carbon and environmentally sustainable development of Ningbo City, Zhejiang Province.
Ningbo is one of the economic centers of the Yangtze River Delta and one of China's important energy production and new material industry bases, relying heavily on fossil fuels.
“Ningbo Urban Green and Low-Carbon Development ProjectIt aims to provide a pioneering demonstration for cities that are facing the same challenges as Ningbo in decoupling economic development from carbon emissions,"said Safar Palvez, chief representative of the Asian Development Bank's representative office in China." The project will benefit Ningbo's 9.6 million residents by improving local air quality and public health."
As ADB's first loan project in Ningbo City, this project will focus on building the institutional and financial capabilities of the Ningbo City government, local commercial banks and small and micro enterprises in mitigating climate change and developing green financing.
The project will also demonstrate innovative methods to reduce greenhouse gas emissions and improve air quality. The first is to carry out pilot projects of green insurance and guarantee systems to lower the entry threshold for green financing and encourage energy-saving projects. The second is to establish a climate financing platform and rely on the platform to support low-carbon new technologies, small and micro enterprises and energy service enterprises. The project's carbon rating system is expected to promote future carbon emissions trading, allowing financial institutions to prioritize environmentally responsible companies and provide more financing to private companies with lower carbon footprints.
The project is expected to reduce greenhouse gas emissions by 750,000 tons of carbon dioxide equivalent every year, helping the Chinese government achieve its "carbon peak" and "carbon neutrality" goals.
