Washington, D.C., April 19, 2013—IFC,
a member of the World Bank Group, today launched a 500 million yuan ($80
million) financing and advisory program with Bank of Shanghai to support
energy efficiency projects in China, the latest step in IFC’s global effort
to combat climate change by steering bank lending to environmentally sustainable
private sector projects.
In China, one of the world’s biggest emitters of greenhouse-gases, four
new banks have now joined IFC’s China Utility-based Energy Efficiency
Finance Small and Medium Enterprises (CHUEE SME) Program over the past
half-year. The program expands access to finance to small and medium enterprises
by mitigating banks’ default risk on smaller firms’ climate-friendly
projects—such as insulating production plants to improve energy efficiency
or using solar energy.
“This program demonstrates how IFC harnesses the power of banks and the
private sector in the global fight against climate change,” said IFC Executive
Vice President and CEO Jin-Yong Cai. “We are now expanding the program
to also address water scarcity, which is another of this century’s biggest
United Nations figures show that around 780 million people are still without
access to improved sources of drinking water, even though the Millennium
Development Goal for access to safe drinking water has been met. IFC’s
industrial water efficiency program in China helps the private sector adapt
to the country’s acute water challenge by saving water, energy, and other
resources. As part of its agreement with CHUEE last month, Bank of Beijing
joined IFC’s China water efficiency program to become IFC’s first water
efficiency program partner bank worldwide.
IFC first established CHUEE in 2006. By the end of 2012, banks participating
in the program had provided loans worth $783 million to 178 energy-efficiency
and renewable-energy projects, reducing greenhouse-gas emissions by 19.3
million tons a year, roughly the equivalent of the annual emissions of
40 medium-sized coal-fired power plants. The CHUEE SME program is expected
to promote loans worth $558 million for up to 350 sustainable energy projects,
helping to reduce 1.5 million tons of greenhouse gases annually.
IFC’s global sustainable energy finance programs span 27 countries across
five continents and have supported a combined loan portfolio of over $1.7
billion. The programs provide financial institutions and companies with
a business rationale for energy efficiency, renewable energy, and water
efficiency projects since resource savings mean that businesses increase
profits. The programs contribute to reducing greenhouse-gas emissions and
promote cleaner production, helping to mitigate climate change.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org.