To promote sustainable consumption and support energy-saving and environmentally friendly products and services, IFC has made a strategic equity investment in BNP Paribas Consumer Finance Co., Ltd. (BNP Paribas Consumer Finance), a company initiated by Bank of Nanjing and BNP Paribas Group, which mainly serves the domestic middle-income consumer groups including blue-collar skilled workers, migrant workers and small and micro business owners.
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IFC’s investment of approximately US$40 million is intended to help BNP Paribas Consumer Finance expand its green consumer credit business, including supporting consumers in purchasing energy-saving home appliances and environmentally friendly home decoration services. IFC will also provide consulting services to help the company establish a sustainable consumer finance framework that meets international standards and best practices.
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“Green consumer finance is a powerful catalyst to encourage low-carbon lifestyles and stimulate demand for green products and services,” said Zhang Weinian, Chairman of Bank of Nanjing BNP Paribas Consumer Finance. “This new initiative builds on the long-term strategic partnership between Bank of Nanjing, BNP Paribas and IFC, and highlights our shared vision to support the sustainable development of the consumer finance industry.”
China has set the dual carbon goals of achieving a carbon peak by 2030 and carbon neutrality by 2060. Although the scale of domestic green loans has gradually increased, green consumer finance is still an emerging industry. Banks also need relevant guidelines and frameworks to implement.
Alan Fullam, Director of IFC’s Financial Institutions Department in Asia Pacific, said: “Carbon emissions from consumption have been increasing in China and now account for more than half of total emissions. Financial institutions like BNP Paribas Consumer Finance play a key role in accelerating the decarbonization of society. This is also the first time in 10 years that we have made an equity investment in a Chinese financial institution under the State Financial Supervision and Administration. We will continue to be committed to helping partners develop new markets while contributing to the achievement of China’s and global climate goals.”
For more than 20 years, IFC has been supporting China in developing sustainable finance, formulating green finance guidelines, helping banks to practice sustainable development and carrying out sustainable credit business. IFC’s previous cooperation with Nanjing Bank (formerly Nanjing City Commercial Bank) promoted the bank’s modernization and the development of its small and medium-sized enterprise loan business. In 2005, IFC facilitated the introduction of BNP Paribas Group as a shareholder of Nanjing Bank through equity transfer.
“Over the past 40 years, IFC has continuously adapted its cooperation with China to meet the evolving development needs of China and the world,” said IFC Country Director for China and Mongolia, Dirk Siddiq. “Our partnership with BNP Paribas Consumer Finance supports private sector initiatives that contribute to global public goods, including addressing climate change and promoting social inclusion. This also reflects the World Bank Group’s current strategic focus in China.”
About International Finance Corporation (IFC)
IFC is a member of the World Bank Group and the world’s largest development institution focused on the private sector in emerging markets. We work in more than 100 countries around the world, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, we committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to build a world without poverty on a livable planet.
