The European Investment Bank (EIB) has announced a new agreement to support carbon reduction efforts in China.
The €300 million investment, signed with the Export-Import Bank of China (Eximbank), will be used on a range of climate projects, including sustainable transport, energy efficiency, renewable energy, and water infrastructure.
The initial loan is expected to lead to further investments totalling €1 billion in support of the transition to a low-carbon economy, provided both by the public and private sectors in China.
Beijing, Tianjin and Hebei provinces will benefit the most from the new scheme. Projects will be given most priority where pollution levels are highest and where they are deemed to have the most climate impact, according to the bank.
Jonathan Taylor, EIB Vice President responsible for East Asia, said that “unlocking climate investment will both create highly skilled jobs and reduce pollution.”
“Tackling climate change…is a global challenge and the European Investment Bank, as the EU Bank, is committed to supporting the Paris climate agreement. This new cooperation with Eximbank aims to unlock a total of EUR 1 billion of new climate related investment in China and reflects the shared commitment of China and Europe to reduce energy use, cut emissions and protect the environment.”
While the €300 million was signed with the Chinese Ministry of Finance in late 2017, it is only until now that the Eximbank has joined on as a partner. The state-owned bank will be responsible for managing the lending programme on a local level, bringing in new financing and identifying the most appropriate projects.
The EIB also approved new low-carbon investments within Europe this week. Its board approved €575 million to support sustainable transport, such as low energy lighting for road in Belgium. The bank will also finance €303 million of clean energy plants, including six new biogas projects and a hydropower plant in Tajikistan.
Photo Credit: Land Rover Our Planet
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