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Figure 2.8 Carbon Factoring Business Process
with local bank credit systems to provide financing for local low carbon
projects. Third, local governments could consider the PPP mode as
described previously, together with cooperation from the local bank
credit system, thereby, increasing the capacity of the bank credit system
of the central government to obtain loans. Finally, while the nation is
actively developing green credit, local governments can have a try at
implementing green credit policies with national or local bank credit
institutions on a pilot basis, to encourage the application of innovative
green credit products. It is suggested that successful cases of banks
(for instance, the Industrial Bank) positively engage in low carbon
development activities and extend green credit, so as to support local
investment projects while enjoying the local government guarantees.
Box 2.10: International Carbon Factoring Financing by
Shanghai Pudong Development Bank
Shanghai Pudong Development Bank provided international carbon factoring financing
service for the hydropower project registered in United Nations with the largest
domestic installed capacity (200,000 kilowatts) and the largest single-unit carbon
emission reduction. The bank has developed a system based on international carbon
(CDM) factoring financing. The system includes special project financing [International
Finance Corporation (IFC) energy efficiency loans, AFD green intermediate credit]
118 Low Carbon Development in China and India
with local bank credit systems to provide financing for local low carbon
projects. Third, local governments could consider the PPP mode as
described previously, together with cooperation from the local bank
credit system, thereby, increasing the capacity of the bank credit system
of the central government to obtain loans. Finally, while the nation is
actively developing green credit, local governments can have a try at
implementing green credit policies with national or local bank credit
institutions on a pilot basis, to encourage the application of innovative
green credit products. It is suggested that successful cases of banks
(for instance, the Industrial Bank) positively engage in low carbon
development activities and extend green credit, so as to support local
investment projects while enjoying the local government guarantees.
Box 2.10: International Carbon Factoring Financing by
Shanghai Pudong Development Bank
Shanghai Pudong Development Bank provided international carbon factoring financing
service for the hydropower project registered in United Nations with the largest
domestic installed capacity (200,000 kilowatts) and the largest single-unit carbon
emission reduction. The bank has developed a system based on international carbon
(CDM) factoring financing. The system includes special project financing [International
Finance Corporation (IFC) energy efficiency loans, AFD green intermediate credit]
118 Low Carbon Development in China and India
