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Green Finance

Green-credit Policy 

As a financial institution that assists in international economic cooperation, China Eximbank vigorously promotes green lending to support balanced and environment-friendly development. In line with the state policy of energy conservation and emission reduction and the concept of sustainable development, the Bank has set stringent environmental standards on projects and tightened up their environmental risk management. It has carried out intensive exchanges with the World Bank, International Financial Corporation and others on environmental assessment and put in place an exist mechanism for high environmental risks.

1. Energetically promotes green lending projects
In recent years, the Eximbank has vigorously supported projects related to energy conservation and emission reduction, environmental protection and circular economy. While strictly complying with the threshold for green lending, the Bank has supported technological innovation and upgrading efforts by key companies and encouraged breakthroughs in key techniques and energy-saving technologies. Since the inception of the Bank, no non-performing loans has been created due to closure of a highly-polluting company or a company with excess production capacity. The Bank has also intensified support to projects involving new energies such as wind, solar and biomass power, which have produced good economic and social returns. By taking full advantage of the onlending platforms for loans from international institutions or foreign governments, the Bank has expanded onlending business for energy conservation and emission reduction projects and assisted companies in business transformation.

2. Strictly apply lending checks to meet green lending standards
During pre-lending investigation, a high threshold is put in place according to the principle of differentiated treatment, i.e. environment-friendly sectors are more likely to get lending support while loans to support highly-polluting or energy-intensive projects or exports of such products are tightly controlled. During the loan application review, the compliance and integrity of the project's environmental impact assessment documents and legality of relevant procedures are carefully examined. When loans are being delivered, the energy consumption rate and environmental compliance practice of the borrower are to be kept under scrutiny. In the post-lending management stage, stringent exist standards are observed and real-time risk warning management is put in place to make sure that when projects fail energy efficiency or environmental standards, or the company violates relevant state environmental regulations, the exist mechanism for lending shall be activated.

3. Fully leverage the role of green lending in directing capital flow
Comprehensive, coordinated and sustainable development is the goal for building socialism with Chinese characteristics. It is also an important strategic goal for financial institutions in the banking sector. It is the bounden duty of the entire society and imperative for risk control in the banking sector to coordinate roles of companies, banks and society and achieve sustainable development of the banks and ultimately the whole society through sustainable companies and projects. In recent years, China Eximbank has developed a policy system for green lending, which strictly controls lending to highly-polluting or energy-intensive industries, incorporates an exist mechanism for environmental risks, increases lending support to circular economy, environment-related sectors, and technological upgrading projects for higher energy efficiency, and promotes financing cooperation with international financial organizations on energy conservation and new energies.

 

Typical Cases 

The Export-Import Bank of China for re-lending sino-german financial cooperation in energy efficiency and renewable energy. China Eximbank also onlent energy efficiency and renewable energy loans under the China-Germany fiscal cooperation framework to Keda Clean Energy Ltd for the construction of clean coal powder gasification systems. The system, widely applicable and with a high carbon conversion rate, does not produce hazardous discharge and is therefore clean and environment-friendly. Each year, the project can save 8,591 tonnes of standard coal and reduce carbon dioxide emissions by 21,400 tonnes.

The export-import bank of China for re-lending sino-german financial cooperation, energy efficiency and renewable energy bond-and-loan support kaidi holding investment co., LTD. China Eximbank acted as an on-lender of energy efficiency and renewable energy loans under the China-Germany fiscal cooperation framework to Kaidi Holding Investment Company Ltd in support of its new energies project. Under the project, 11 biomass power generation plants will be built using farm residue such as rice husk and straw. In addition to its economic and environmental benefits, the project will generate considerable income and job opportunities for local farmers and thus stand out as a typical example in China's endeavour to promote energy conservation, the use of new energies and the building of a new countryside.

The export-import bank of China pure rolling of the world bank support of loan Huaxin cement kiln low temperature waste heat power generation project. China Eximbank onlent US$15 million World Bank energy-efficiency loan, together with RMB116 million from its own account, to Huaxin Cement Company Ltd to finance its construction of six cement production lines for the cement kiln pure low-temperature residual heat power generation facility. Upon completion, the project is expected to generate 350 million kwh of electricity annually, equivalent to saving 122,500 tonnes of standard coal and reducing nearly 300,000 tonnes of carbon dioxide emissions.