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2.5.4 International Green Credit
Although commercial loans have not shown much interest in the
climate change sector, there have been some special green credit
products for the carbon emission reduction programme. The
green credit as provided by international institutions may offer
suitable funds and technique support for development banks and
commercial banks in developing countries to help their competency
construction, resolve the obstacles in private sector investing in
relevant climate sectors, and offer additional sources of finance to
local governments. Multilateral and bilateral financial institutions,
such as WB, AFD, and others, have carried out a series of cooperation
initiatives with the financial institutions in China (UNEP 2011). The
provider of green credit helps cooperative banks to formulate their
own climate strategy and climate financial asset portfolio and assist
them with reducing credit risks, which would in turn promote the
financing of private green investment in full compliance with climate
friendliness standards and support the enterprise’s green investment.
The cooperation between international development financial
institutions and domestic commercial banks could also help them to
discover investment opportunities and select industries with highest
returns and encourage clients to invest in the low carbon sector by
offering loans. At the same time, development financial institutions
could also offer grants for competency construction and technique
support to help the banks to carry out green credit business.
Box 2.13: Intermediate Credit Programme under Sino-German
Financial Cooperation
As of 1987, multiple intermediate credit programmes have been arranged under Sino-
German Financial Cooperation. The Ministry of Finance executes the agreement with
KfW and then Chinese banks would be responsible for on-lending. The Export-Import
Bank of China acts as the on-lending Chinese bank for energy saving/renewable energy
loans under Sino-German Cooperation for International Climate Protection. In 2012,
KfW provided new capital with 42 million Euros for carrying out a green intermediate
credit programme, which was specially used for supporting the energy saving and
emission reduction of small and medium-sized enterprises in China—China Citic Bank
and Chang’an Bank were the on-lending banks. At present, the annual interest rate of
such loans is 3 per cent, with a maturity of 12 years, including a three-year grace period.17
17 For details, refer to the Ministry of Finance website available at http://wzs.
ndrc.gov.cn/gwdk/wgzfdkgbxx/t20110422_407371.htm
128 Low Carbon Development in China and India
Although commercial loans have not shown much interest in the
climate change sector, there have been some special green credit
products for the carbon emission reduction programme. The
green credit as provided by international institutions may offer
suitable funds and technique support for development banks and
commercial banks in developing countries to help their competency
construction, resolve the obstacles in private sector investing in
relevant climate sectors, and offer additional sources of finance to
local governments. Multilateral and bilateral financial institutions,
such as WB, AFD, and others, have carried out a series of cooperation
initiatives with the financial institutions in China (UNEP 2011). The
provider of green credit helps cooperative banks to formulate their
own climate strategy and climate financial asset portfolio and assist
them with reducing credit risks, which would in turn promote the
financing of private green investment in full compliance with climate
friendliness standards and support the enterprise’s green investment.
The cooperation between international development financial
institutions and domestic commercial banks could also help them to
discover investment opportunities and select industries with highest
returns and encourage clients to invest in the low carbon sector by
offering loans. At the same time, development financial institutions
could also offer grants for competency construction and technique
support to help the banks to carry out green credit business.
Box 2.13: Intermediate Credit Programme under Sino-German
Financial Cooperation
As of 1987, multiple intermediate credit programmes have been arranged under Sino-
German Financial Cooperation. The Ministry of Finance executes the agreement with
KfW and then Chinese banks would be responsible for on-lending. The Export-Import
Bank of China acts as the on-lending Chinese bank for energy saving/renewable energy
loans under Sino-German Cooperation for International Climate Protection. In 2012,
KfW provided new capital with 42 million Euros for carrying out a green intermediate
credit programme, which was specially used for supporting the energy saving and
emission reduction of small and medium-sized enterprises in China—China Citic Bank
and Chang’an Bank were the on-lending banks. At present, the annual interest rate of
such loans is 3 per cent, with a maturity of 12 years, including a three-year grace period.17
17 For details, refer to the Ministry of Finance website available at http://wzs.
ndrc.gov.cn/gwdk/wgzfdkgbxx/t20110422_407371.htm
128 Low Carbon Development in China and India
