The Asian Development Bank (ADB) has approved a $200 million loan equivalent to enhance low-carbon transition investments and climate-resilient development in industrial parks in the the People’s Republic of China (PRC).
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Industrial parks, which are designated zones for industrial use and factories, are significant sources of carbon emissions in the PRC, as industrial processing and activities are highly energy intensive and depend on fossil fuels. In 2020, industrial parks consumed one-third of the country’s energy, accounting for 31% of greenhouse gas emissions.
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“ADB continues to support the PRC and its climate change commitments by catalyzing financing and strengthening institutional capacity for low-carbon transitions in carbon-intensive sectors,” said ADB Country Director for the PRC Safdar Parvez. “The project will benefit 1.5 million people working and living in industrial parks through reduced carbon emissions and improved air quality.”
Industrial parks, which are designated zones for industrial use and factories, are significant sources of carbon emissions in the PRC, as industrial processing and activities are highly energy intensive and depend on fossil fuels. In 2020, industrial parks consumed one-third of the country’s energy, accounting for 31% of greenhouse gas emissions.
The Promoting Industrial Park Green and Low-Carbon Development Project, a financial intermediation loan (FIL), aims to strengthen institutional capacity by establishing and institutionalizing a transition finance system, which will provide a robust tool and practical approach to the decarbonization of industrial parks.
The project will also finance low-carbon transition subprojects in industrial parks including converting biomass to solid biofuel as renewable energy, replacement of fossil fuel with renewable energy, biogas generation and organic fertilizer production, and biomass fueled heat supply. The project will provide diverse market-based financial services to a range of ventures and businesses engaged in decarbonization, accelerating investments in the low-carbon transition of industrial parks. It will also promote financing for enterprises led by women.
The total project cost is $602.25 million equivalent and is expected to be completed in 2031.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.
About ADB
The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. It assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development.
