EUR 500 million to support climate change mitigation in China
- Nov 28, 2007
The China Climate Change Framework Loan (CCCFL) was signed by Philippe Maystadt, President of the European Investment Bank, and Xie Xuren, Minister of Finance, on the occasion of the 10th EU-China Summit in Beijing.
“China is a crucial partner of the EU in international climate policies. The effective implementation of its ambitious and far-reaching Climate Change Programme is critical to the containment of global greenhouse gas (GHG) emissions as China becomes one of the largest energy consumers in the world”, said Mr Maystadt. This operation is a tangible example of the EIB contribution to the EU policy on climate change and the EU cooperation policy with China”, he added.
The EIB's China Climate Change Framework Loan is a large-scale multi-investment scheme designed to support investment projects in the energy and industrial sectors that will help to prevent or reduce greenhouse gases and other polluting emissions. A broad range of project categories will be eligible for EIB financing, including projects using renewable energy sources, energy efficiency enhancement, the capture and use or storage of greenhouse gases and afforestation projects. The EIB facility will benefit a broad range of project promoters, including central or provincial government agencies, municipalities, public utilities and companies, including PPPs/public-private joint ventures.
The projects to be supported by the EIB will be identified by China’s National Development and Reform Commission and the Ministry of Finance. Individual schemes will be selected by the Bank, appraised by its staff and submitted individually to its decision-making bodies. The Bank will ensure that the projects supported under this facility are sound and implemented satisfactorily, in compliance with the EIB’s environmental and social requirements.
During the implementation of this facility, priority will be given to projects that (1) result in a significant reduction in GHG emissions, (2) have the potential to generate CDM carbon credits, and (3) can lead to co-financing with other international and/or bilateral financial institutions.
This is the first loan to be provided by the EIB under the EUR 3bn Energy Sustainability and Security of Supply Facility authorised in June 2007 by the Governors of the Bank (EU Economy and Finance Ministers) to enhance EU action addressing climate change and security of energy supplies.
Outside the EU, the Bank contributes to the European development and cooperation policy in some 120 countries in Asia and Latin America, Central and Eastern Europe, the Balkans, the Mediterranean region, Africa, the Caribbean and the Pacific. Since 1993 the EIB has carried out four successive lending mandates for Asia and Latin America. Under the current mandate (ALA IV), covering the period 2007-2013, the EIB is authorised to lend up to EUR 3.8 billion for financing operations supporting EU cooperation strategies in these regions and complementing other EU development and cooperation programmes and instruments in these regions.The EUR 3.8 billion regional ceiling is broken down into indicative sub-ceilings of EUR 2.8 billion for Latin America and EUR 1 billion for Asia. The EIB can also support EU policies via financing operations outside the mandate. This was the case of the EUR 500 million loan to support the Beijing Airport Expansion project and also applies to the present CCCFL.
To date, the EIB has helped to finance four other projects in the People's Republic of China:
2005 Beijing International Airport (EUR 500 million)
2001 Guangxi toll expressway to Vietnamese border (EUR 56 million)
1999 Chengdu drinking water treatment plant (EUR 23 million)
1995 Ping Hu oil and gas development (EUR 55 million).