ADB to fund green finance development in Hebei
The Asian Development Bank has approved a $198.51 million equivalent loan to fund green finance development in Hebei province, China.
The loan will be provided via the provincial and city governments to the Bank of Xingtai, a provincial commercial bank in Hebei, to finance sub-projects that meet national and international green finance standards.
The project will establish a green finance business line for the bank that is replicable by other banks; a green finance information technology system; and international best practice in such areas as green finance taxonomy, environment, social, and governance; and related institutional capacity development.
Potential sub-projects include biomass power generation, biofuel production, waste-to-energy investment, plastic replacement - for example biodegradable material production' green buildings, and environment-friendly upgrades to relevant components of industrial production lines. The ADB funds are likely to contribute to a small portion of the total sub-project costs but catalyze additional market finance.
The total cost of the project is $795.04 million, with $596.53 million in counterpart financing, including $198.51 million from the Bank of Xingtai, and the rest from private sector and commercial finance. The project is expected to be completed at the end of 2026. Of the total project amount, the climate mitigation costs are estimated at about $254.08 million. The resulting greenhouse gas emission reductions are projected to be 1,861,632 tonnes of carbon dioxide equivalent.
