Page 159 - Low Carbon Development in China and India
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Cooperation Agency (JICA), etc. Since its entrance into China in 2004,
AFD has supported a large number of programmes relating to climate
change through cooperation and offering loans. Up to April 2010, the
total investment in China was over 700 million Euros. While offering
financial support, AFD attaches great importance to include capacity
construction, technical assistance, leveraging private capital for joint
financing, etc., in the capital design. Nevertheless, AFD is now offering
less and less funds for China in the form of grants. In the climate
financing sector, the technical assistance for financial institutions and
exploration or licence for innovative financing models has become a
more important channel for bilateral cooperation. JICA and KfW have
similar mechanisms to carry out programmes; however, they intend to
provide less assistance for China’s development, which can be shown
in the total funds provided, the numbers of programmes developed,
and the financing instruments used in recent years. Therefore, China
should actively turn to technical communication cooperation and
non-assisting loans and make full use of the technologies and funds
brought by BFIs.
As the main bilateral institutions have changed their strategy and
composition for providing funds for China, the local government
should actively strengthen communication and coordination with
bilateral institutions so as to jointly study and affirm the feasibility
and specific content of joint financing for low carbon programmes.
It is suggested that China sets up a state-level platform to facilitate
communications between bilateral institutions and local government
and inject the additional cost for local governments to facilitate low
carbon economy financing.
In additional to bilateral financial institutions, there are a few
bilateral funds which support low carbon development programmes.
The German International Climate Initiative (ICI) and Japan Fast-start
Fund (JFSF) have several programmes, which deal with emission
reduction and alleviation, respectively. Among these, ICI has approved
21 programmes from 2008 to 2012 in total, covering a total amount of
USD 53 million; JFSF has only supported one programme, covering
an amount of USD 20,000. It can be seen that the bilateral climate fund
is not an important source of China’s climate fund, and China is also
not a target of the international bilateral climate fund. Nevertheless, in
view of the financial gap in the whole China and the local government
in developing a low carbon economy, the local government should
strengthen the communication and contact with bilateral funds so as
to get more additional funds for developing such an economy.
124 Low Carbon Development in China and India
AFD has supported a large number of programmes relating to climate
change through cooperation and offering loans. Up to April 2010, the
total investment in China was over 700 million Euros. While offering
financial support, AFD attaches great importance to include capacity
construction, technical assistance, leveraging private capital for joint
financing, etc., in the capital design. Nevertheless, AFD is now offering
less and less funds for China in the form of grants. In the climate
financing sector, the technical assistance for financial institutions and
exploration or licence for innovative financing models has become a
more important channel for bilateral cooperation. JICA and KfW have
similar mechanisms to carry out programmes; however, they intend to
provide less assistance for China’s development, which can be shown
in the total funds provided, the numbers of programmes developed,
and the financing instruments used in recent years. Therefore, China
should actively turn to technical communication cooperation and
non-assisting loans and make full use of the technologies and funds
brought by BFIs.
As the main bilateral institutions have changed their strategy and
composition for providing funds for China, the local government
should actively strengthen communication and coordination with
bilateral institutions so as to jointly study and affirm the feasibility
and specific content of joint financing for low carbon programmes.
It is suggested that China sets up a state-level platform to facilitate
communications between bilateral institutions and local government
and inject the additional cost for local governments to facilitate low
carbon economy financing.
In additional to bilateral financial institutions, there are a few
bilateral funds which support low carbon development programmes.
The German International Climate Initiative (ICI) and Japan Fast-start
Fund (JFSF) have several programmes, which deal with emission
reduction and alleviation, respectively. Among these, ICI has approved
21 programmes from 2008 to 2012 in total, covering a total amount of
USD 53 million; JFSF has only supported one programme, covering
an amount of USD 20,000. It can be seen that the bilateral climate fund
is not an important source of China’s climate fund, and China is also
not a target of the international bilateral climate fund. Nevertheless, in
view of the financial gap in the whole China and the local government
in developing a low carbon economy, the local government should
strengthen the communication and contact with bilateral funds so as
to get more additional funds for developing such an economy.
124 Low Carbon Development in China and India
