The European Investment Bank plans to lend 500 million euros (US$539.1 million) to Chinese green projects in 2017, a senior official of the bank said yesterday. The bank of the European Union is also working with China’s central bank on a standard to govern the issuance of green bonds as both push for investment related to climate change. “We have a strong pipeline of projects this year, with interest in forestry and energy efficiency. We are also looking at projects in urban transport,” EIB Vice President Jonathan Taylor said at a media briefing in Shanghai. He added that the EIB will lend another 500 million euros to environment and climate-related projects in China in 2018.
Last year, EIB lent 298 million euros to eight Chinese projects, ranging from forestry, biomass to energy efficiency. The bank has provided 16.7 billion euros of loans to climate-related projects since 2007, according to Taylor. The EIB and the People’s Bank of China are also working on a framework for a common standard on definition, auditing procedure and measurement of investment outcome for the issuance of green bonds to help them turn into a global asset class and promote capital flows in both directions, Taylor said.
The EIB and PBOC will publish findings of the discussions in a white paper later this year, Taylor said. China is pushing to fund green projects, which have positive environmental or climate benefits, to support its agenda of industrial reform and its anti-pollution fight.
Last year, 29 Chinese firms and financial bodies raised over 201 billion yuan (US$29 billion) in green bonds, including medium-term notes and asset-backed securities, according to a report by China Central Depository & Clearing Co.