Latterly, Industrial Bank (IB) Shanghai Branch and other 9 banks in Shanghai have signed the “Shanghai Cooperation Memorandum on￥50 Billion in Green Financing on a Pledge of Energy Conservation and Emission Reduction Usufruct” and affirmed their commitment of ￥50 Billion in total in financing to energy-saving and environment-friendly service suppliers in Shanghai after the model of “energy conservation and emission reduction usufruct” during the “13th Five-year Plan” period. The Memorandum provides a model of financing for energy conservation and emission reduction in green industrial parks – and with the greatest participation by banks and the largest investment at that.
It is understood that the Memorandum is the updated version of Program on the Cooperation in Financing for Shanghai Energy Performance Contracting (EPC) on a Pledging of Future Usufruct in 2013. At that time, IB Shanghai Branch, as a member of the 13 banks, entered the Program on the Cooperation in Financing for Shanghai EPC on a Pledge of Future Usufruct to the value of ￥10 Billion during the “12th Five-year Plan” period. Accordingly, the Memorandum embodies the positive efforts of IB to promote the expansion of green industrial parks and development of low-carbon recycling industries in Shanghai in response to the “13th Five-year Plan”.
As the first Equator bank in China, IB has brought into play its leading advantages in green finance to push the green transformation of Shanghai’s economic structure. IB has used its positive advantage in green financing in an effort to push Shanghai’s transformation to a greener economy. In 2011, the Bank has taken the lead in the completion of a strategic cooperation agreement with Shanghai Environment and Energy Exchange, which is the first of its kind founded on cross-sector cooperation between environment and energy industry and the finance industry in Shanghai. Meanwhile, IB has scored the first certificate of settling bank for carbon transaction and become the first depository and clearing bank for funds for pilot programs of carbon trading in Shanghai. Meanwhile, IB has also demonstrated its commitment to organizations engaging in emission control and institutions specializing in carbon asset development and management: by virtue of multi-level and integrated comprehensive products and services in carbon financial finance, the Bank has managed to harness market forces to encourage energy savings and emission reduction on the part of enterprises. Furthermore, the Bank has developed new lines in green financing, which cover green building, green transport, cyclic utilization of water resource, replacement of small- and medium-sized coal-fired boilers (kilns) with clean energy equipment, power generation with renewable energy or clean energy, and upgradation of manufacturing facilities in industrial parks. And valiant efforts have been made to build on its product mix, ranging from project financing, financial leasing, industrial investment fund to green bonds. The aim is to foster the development of projects for energy conservation and environmental protection projects in Shanghai.
It is reported that the Shanghai Energy Conservation Service Industry Summit & EPC Innovation and Development Forum have followed the Cooperation Memorandum with an award presentation to IB Shanghai Branch in recognition of its financial support for energy conservation industry during the “12th Five-year Plan” period. The award was presented by the office of the Steering Committee for Shanghai Energy Conservation EPC & the Environmental Protection Service Association. Last year, IB won the Annual Award for Innovation in EPC Finance from 2013 to 2014, an earlier award from the Association.
Green industrial parks serve play a linchpin role as an important grab for in energy conservation and emission reduction for industry industries in Shanghai and structural reform pushing forward structural reform on the supply side. On the signing day, Shanghai Municipal Commission of Economy and Information Technology Committee has designated selected five industrial parks, including Lingang Industrial District, Jinshan Industrial District, Shanghai Chemical Industry Park, Jinqiao Development Zone,and Shibei Hi-tech Park as pilot green industrial parks, with a view to spurring the state-level and municipal-level parks across the city to develop into green industrial parks.