The project will catalyze and demonstrate the use of green finance in Hebei province, one of the most polluted industrial regions in the People’s Republic of China (PRC). The Asian Development Bank funds will be provided to the Bank of Xingtai, a regional city commercial bank in Hebei, to finance subprojects that meet national and international green finance standards. The Bank of Xingtai was chosen because of its established business relationships with polluting industries in and around the city of Xingtai, its improving financial and operational performance, and its firm commitment to transform itself into a green bank that focuses on sustainable lending. The project will introduce the latest concepts and international best practices on green, responsible, and sustainable financing into the Bank of Xingtai’s operations, including: (i) green finance taxonomies (i.e., defining what is “green”); (ii) a risk framework that covers environment, social, and governance (ESG) requirements that substantially exceed standard credit risk-based models of conventional commercial banks;3 and (iii) ESG public disclosure requirements based on the Global Reporting Initiative (GRI). The project will also serve as a green finance business model for other city and rural commercial banks in the PRC to replicate, thereby furthering the government’s efforts to expand green finance in the country and, ultimately, contribute to better regional and global environmental outcomes.
The report and recommendation of the President to the Board of Directors (RRP) document describes the terms and conditions of a project for consideration and approval by ADB's Board of Directors.
This document dated October 2020 is provided for the ADB project 53345-001 in the People's Republic of China.