“During the “12 th Five-year Planning” period, Industrial Bank (IB) will provide Chongqing with special green financing up to RMB 30 billion for energy conservation and environmental protection, and give preferential loan terms and interest rates for the financing of key low-carbon, energy conservation and environmental protection projects.” On the morning of August 21, at the “Beautiful China Tour • Beautiful Mountain City – Chongqing Government-Banking-Enterprise Conference on Green Finance” jointly held by IB and the Development and Reform Commission of Chongqing, IB Chongqing Branch signed the Strategic Cooperation Agreement with the commission and many key enterprises in the field of energy conservation and environmental protection, with a view to boosting the city's “Environmental Protection Action for Blue Sky, Clean Water, Green Land and Tranquility” and lend vigorous support to the construction of “Beautiful Mountain City”.
The meeting was attended by more than 60 representatives from relevant competent government authorities of Chongqing Municipality including the Environmental Protection Department and the Financial Service Office, all district and county governments, key groups and entities, and enterprises engaging in energy conservation and environmental protection across the municipality, Chongqing Emission Right Trading Center and the trading platform of Chongqing United Assets and Equity Exchange.
It is said that, as the pilot region for both a state-level carbon trading and emission right trading, Chongqing Municipality put forward a range of objectives. For instance, it will reduce the emission of carbon dioxide by each unit GDP across the city during the “12 th Five-year Planning” period by more than 17% compared with the figure in 2010, and the energy consumption by each unit GDP by 16%; it will build the model city for low-carbon development in Southwest China and the national forerunning demonstration region for low-carbon development.
In order to support the city to fulfill its energy conservation and emission reduction objectives, IB Chongqing Branch, by dint of the professional power of the Head Office in the area of green finance, will provide “considerate” financial services for Chongqing to implement the key energy-conserving and emission-reducing projects, construct the mechanisms for carbon market and emission right market, and cultivate the regional energy conservation and environmental protection industry.
As also learnt by the reporter at the conference, this year IB released its special program in the area of green finance – “Green Finance • Tactics (2013)” – a comprehensive multi-layered system of products and services covering the Bank's ten basic products of green finance, seven characteristic products, five financing models and seven solutions. Considering the financing difficulties of emerging customers in the energy conservation and environmental protection industries, which are confronted with the guarantee problem, the Bank has introduced the energy conservation and emission reduction (CHUEE) financing products specifically designed for SMEs in the underdeveloped areas and enhanced the credit ratings of enterprises with the loss sharing mechanism; considering the energy management companies, it has customized financing for energy performance contracting (EPC) by using the future usufruct as the pledge; and considering the franchised projects related to energy conservation and environmental protection such as sewage treatment plant and solid waste reclamation, it has released the financing products by pledging the franchised business right. Such a range of product innovations have effectively reduced the financing threshold for enterprises, and opened new approaches for alleviating the guarantee problem encountered by financing enterprises. Therefore, a considerable number of corporate customers engaging in energy conservation and environmental protection that have great development potential and prominent specialized advantages but lack guarantee resources have received credit support.
As far as the needs of the carbon trading and emission right trading pilot of Chongqing are concerned, IB has customized an integrated solution covering the design of trading platform and mechanism, and development of trading system, as well as transaction clearing, settlement, capital management and support financing.
In the next stage, the principal of IB Chongqing Branch disclosed, the branch would provide individualized financial services to various enterprises on the industrial chain of energy conservation and environmental protection considering the regional economic characteristics of Chongqing.
By the end of June 2013, IB has provided financing of RMB 5.02 billion in the area of energy conservation and environmental protection across the city, covering more than 100 projects in many industries such as electric power, coal, iron and steel, chemical, and papermaking. The projects supported are expected to reduce 2.80 million tons of carbon dioxide and 1,400 tons of sulfur dioxide. The carbon emission reduced is equivalent to shutting off 7 thermal power plants of 100 MW or stopping running10,000 taxis for 2years.
It is reported that this is the 25 th anniversary of IB, and meanwhile the 5 th anniversary for the bank's adoption of the “Equator Principles”. In order to further support the development of energy conservation and environmental protection in China and boost the building of “Beautiful China”, the Bank has launched the serial campaign of “2013 Beautiful China Tour • Green Finance” across the country. Chongqing is the third stop of the campaign.
By the end of this June, IB has accumulatively provided financing of RMB 286.2 billion in the area of energy conservation and emission reduction, with its financing balance reaching RMB 155.3 billion, thus singing the highest pitch for the building of “Beautiful China”.