Industrial Bank(IB) has recently executed the first batch of loans linked to the development of China Certified Emission Reduction (CCER) projects, following the restart of the voluntary greenhouse gas emission reduction trading market (referred to as the “CCER Market”). This initiative encourages and supports enterprises in developing CCER projects.
Notably, IB’s Harbin branch executed the market’s first “Dual-linked Loan for CCER Project Verification and Validation,” granting a credit line of 10 million yuan to Heilongjiang Sengong Carbon Asset Investment Development Co., Ltd., specifically for CCER project development, verification, and emission reduction validation. Additionally, the Chengdu branch launched the market’s first “CCER Development Linked Loan” for a forestry company in Jintang County, Chengdu City, Sichuan Province, providing a 10 million yuan loan for CCER project development, with the interest rate linked to the project’s outcomes.
Voluntary greenhouse gas emission reduction trading represents a significant institutional innovation, facilitating the achievement of carbon peak and carbon neutrality goals through market mechanisms. It encourages a wider range of industries and enterprises to participate in greenhouse gas reduction efforts. On October 19, 2023, the Ministry of Ecology and Environment and the State Administration for Market Regulation jointly issued the Measures for the Administration of Voluntary Greenhouse Gas Emission Reduction Trading (Trial), marking the official relaunch of the CCER market.
“Our bank actively promotes innovation in green financial products. By linking loan interest rates to the completion of key phases in CCER projects, such as verification and emission reduction validation, we effectively guide and motivate enterprises to participate in carbon sink development. This approach revitalizes the market value of carbon sink resources and is another innovative step by our bank to support the dual carbon strategy and promote the green and low-carbon transformation of the economy and society,” said a representative from IB’s Green Finance Department.
As a pioneer in green finance in China, Industrial Bank has actively embraced sustainable development. It has continuously innovated products focused on “carbon reduction” and other key areas. The bank has initiated the first batch of carbon quota pledge loans, the first carbon-neutral bonds, and the first equity investment carbon-neutral bonds in the national carbon emissions trading market. Additionally, it has actively promoted and implemented carbon-linked loans, providing robust financial support for achieving carbon peak and carbon neutrality goals.