ADB promotes low-carbon transformation of China's industrial parks

The Asian Development Bank (ADB) recently approved a US$200 million equivalent loan to enhance low-carbon transformation investment and climate-resilient development in China's industrial parks.

"By promoting financing and enhancing institutional capabilities for the low-carbon transformation of carbon-intensive industries, ADB continues to support China and help China fulfill its commitments to address climate change." Safar Parvez, chief representative of the ADB's representative office in China, said,"The project is committed to reducing carbon emissions and improving air quality, and is expected to benefit 1.5 million people who work and live in industrial parks."

As an area specifically designated for industrial industries and factories, the industrial park is a major carbon emitter in China. Because processing and other industrial activities are energy-intensive and rely on fossil fuels, the energy consumption of the industrial park will account for one third of the country's total energy consumption in 2020.

Promote the adoption of financial intermediary loans for green and low-carbon development projects in industrial parks, enhance institutional capabilities by building a transformative financial system and promoting the institutionalization of the system, and thereby provide powerful tools and practical methods for the decarbonization and transformation of industrial parks.

The project will also provide financing for multiple low-carbon transformation sub-projects in the industrial park, including the conversion of biomass into biosolid fuels that are renewable energy sources, the replacement of fossil fuels with renewable energy sources, biogas and organic fertilizer production, and biomass fuel heating. The project will be market-oriented, provide diversified financial services to many venture capital institutions and enterprises in the field of decarbonization, and accelerate low-carbon transformation investment in industrial parks. The project will also promote financing for female-led businesses.