Beijing, December 13, 2017—IFC, a member
of the World Bank Group, is launching an innovative framework to encourage
Chinese commercial banks to mainstream green finance and channel more capital
into climate-smart investments. China Ma’Anshan Rural Commercial Bank
has signed an agreement with IFC, and will be the first partner to adopt
Through this framework, IFC aims to help establish three to five dedicated
green commercial banks and enable them to meet a range of minimum standards,
which include the following:
· that 60 percent
of the total outstanding loans are for climate-friendly projects
· that 70 percent
of the total bank products are green financial instruments
· that 80 percent
of bank employees obtain international green finance certificate
· that the
bank achieves 100 percent carbon neutrality
· that 100
percent of the bank-owned properties are green building certified
“Our experience shows that green finance is essential in channelling
capital and resources into China’s low-carbon economic growth,” said
Randall Riopelle, IFC’s Country Manager for China, Korea and Mongolia.
“This framework will help Chinese banks to further expand the green finance
market and demonstrate a model for replication in other emerging markets.”
Since 2012, when China introduced Green Credits, it has established the
world’s biggest green credit market worth more than $1 trillion. Green
credit now comprises almost 10 percent of China’s total loan portfolio.
China’s onshore green bond market also grew rapidly, with a total issuance
of around $30 billion in 2016.
From renewables, green building, agribusiness, and waste-treatment, to
low-carbon urban transportation, China is a key driver in global growth
of demand for climate-smart technologies. The country is now accounting
for nearly half of all new renewable projects and is the world’s third
largest investor in rooftop solar.
“We are committed to integrating green objectives in our core operations
to become a dedicated green bank. We hope to draw on IFC’s expertise in
green finance and become China’s first green commercial bank with international
standards,” said SUN Xiao, Chairman of Ma’Anshan Rural Commercial Bank.
“We welcome this partnership, where IFC will provide us with the framework
and support that we need. This will help us increase our support to China’s
climate-smart industries, promote ecological conservation, support environmental
recovery, and contribute to the financial sector’s social responsibilities.”
The framework, designed by IFC’s China Climate Finance Program, builds
on the success of IFC’s work with Chinese regulators and banks on greening
the banking sector through investment, capacity building and policy advice
over the past 10 years.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In FY17, we delivered a record $19.3
billion in long-term financing for developing countries, leveraging the
power of the private sector to help end poverty and boost shared prosperity.
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