fbpx 50096-002: Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—China National Investment and Guaranty Corporation’s Green Financing Platform Project | Asian Development Bank

China, People's Republic of: Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—China National Investment and Guaranty Corporation’s Green Financing Platform Project

Sovereign (Public) Project | 50096-002 Status: Active

The Asian Development Bank is working with the People's Republic of China to support green and pollution-reduction projects in the greater Beijing-Tianjin-Hebei region. The project is mobilizing domestic financing for long-term, coordinated efforts across many different sectors, including energy, transport, urban, and agriculture, to bring about air quality improvements.

 
Project Name Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—China National Investment and Guaranty Corporation’s Green Financing Platform Project
Project Number 50096-002
Country China, People's Republic of
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3504-PRC: Air Quality Improvement in the Greater Beijing Tianjin Hebei Region China National Investment and Guaranty Corporation's Green Financing Platform Project
Ordinary capital resources US$ 499.60 million
Loan: Air Quality Improvement in the Greater Beijing Tianjin Hebei Region China National Investment and Guaranty Corporation's Green Financing Platform Project
Huaxia Bank US$ 400.00 million
Bank of Beijing US$ 200.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy / Energy efficiency and conservation - Renewable energy generation - biomass and waste - Renewable energy generation - solar

Finance / Small and medium enterprise finance and leasing

Transport / Urban public transport

Gender Equity and Mainstreaming No gender elements
Description The proposed project will establish a dedicated green financing platform for this purpose which will overcome the three barriers mentioned above (limited commercial bank financing, lack of incentive structures, and the lack of strategy for pollution control). The proposed Green Financing Platform (GFP) will introduce innovative financial instruments, recommended in the recently issued Green Financing Guidelines by China Banking Regulatory Commission and NDRC, to mobilize private and social capital for green investments. The proposed financing facility will offer a variety of financial products, which may include: (i) debt financing with limited recourse to fixed asset collateral; (ii) loss guarantee support to low-carbon development, energy saving, and environmental improvement projects for easier access to commercial bank financing; and (iii) mezzanine financing in the form of subordinate debt or preference share investments in promising SMEs, etc. This proposed project will also introduce international experience and bring advance technologies to the greater BTH region to help industries become low-carbon, low-emission and efficient green industries, thereby improving the air quality.
Project Rationale and Linkage to Country/Regional Strategy

The proposed project builds on the policy actions initiated in Hebei Province under the Policy Based Loan (PBL) for Beijing-Tianjin-Hebei (BTH) Air Quality Improvement Hebei Policy Reforms Program, approved by Asian Development Bank (ADB) in 2015. The PBL included policy actions supporting (i) adjustment of the energy structure, (ii) promotion of public transportation, (iii) reduction of seasonal biomass burning and promotion of clean energy in rural area, (iv) capacity development in environmental monitoring, administration and supervision, and (v) employment promotion for inclusive industrial transformation. The proposed project will further (i) strengthen and complement implementation of these policy actions throughout the greater Beijing-Tianjin-Hebei region (hereinafter referred to as BTH region), and (ii) accelerate air quality improvements in a sustainable manner. In particular, it will address the critical need to provide more efficient and effective credit access to enterprises and project developers to stimulate actions on these policy actions. The intervention will be in the core areas for air quality improvement with significant co-benefits of carbon dioxide (CO2) emission reductions to help the region simultaneously achieve both objectives of better air quality and low-carbon development.

The BTH region is one of the most important economic regions in the PRC, with more than a third of the country's gross domestic product (GDP). But this region also consistently experiences poor air quality. In 2013, the Government of the PRC promulgated its first Comprehensive Action Plan for Air Pollution Prevention and Control (CAAP) 2013 2017 to help improve air quality in the core BTH region. But the BTH air quality is still far below national and World Health Organization standards. Since BTH's air pollution problem is transboundary, an integrated approach is required to tackle the air pollution issues in the BTH region. The approach includes advanced and effective pollution control measures with efficient coordination among BTH, stricter environmental policy and regulation, innovative financing mechanisms, and a robust results monitoring and verification system.

In parallel with the efforts to control air pollution and respond to environmental degradation, the PRC government is committed to peak its CO2 emission by 2030. Maintaining sustainable economic development while also undertaking low-carbon transformation and fixing environmental degradation is challenging. In order to succeed, a set of complementary policies is needed to improve air quality (by reducing coal and other fossil fuel consumption), abate CO2 emissions, and foster green growth. The Government's policy framework for climate change, _National Plan for Addressing Climate Change (2014-2020)_ was issued in 2014, and stresses the importance of mitigating climate change through a holistic and integrated approach, including improving energy efficiency, optimizing the energy consumption structure, restructuring the industrial sector, and restoring the ecological system and protecting the environment.

According to the People's Bank of China, an annual investment of $330 billion in each of the next five years would be needed for green growth in order to meet the environmental targets announced by the Ministry of Environment. Based on a report prepared by the Clean Air Alliance of China, implementation of CAAP for core BTH region will need direct investment of $37.8 billion. As of 2013 and 2014, the dedicated financial support from the central government was only $0.76 billion and $1.52 billion. Although the core BTH region is getting support from ADB and Kreditanstalt f r Wiederaufbau's (KfW) for the approved PBL and the World Bank's for the Program-for-Results financing assistance, serious financing shortage and limited financing resource hinder the green growth and low-carbon transformation for the BTH region.

Impact Air pollution reduced and public health improved in the BTH region.
Project Outcome
Description of Outcome Air quality improvements and CO2 emission reduction accelerated.
Progress Toward Outcome -
Implementation Progress
Description of Project Outputs

BTH-dedicated green financing platform established and commercial financing for pollution-reduction projects leveraged.

For SMEs and ESCOs from the green financing platform, barriers lowered and financing scaled up.

Capacity in new financial products and to appraise and implement green financing projects strengthened.

Status of Implementation Progress (Outputs, Activities, and Issues) As of December 2018, the project has approved 35 subprojects with a total investment of about CNY7.58 billion.
Geographical Location Beijing, Hebei, Henan, Inner Mongolia, Liaoning, Shandong, Shanxi, Tianjin
Safeguard Categories
Environment FI
Involuntary Resettlement FI
Indigenous Peoples FI
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Not Applicable.
Procurement The subborrowers will use the commercial practices acceptable to ADB for procuring goods and services using the proceeds of subloans and investments. A procurement manual has been prepared to provide guidance on how the commercial practices can be adopted in a manner consistent with ADB's procurement principles.
Responsible ADB Officer Yun Zhou
Responsible ADB Department East Asia Department
Responsible ADB Division EASI
Executing Agencies
China National Investment and Guaranty Corporation
9 Floor, Office Bldg,
No. 100 Xisanhuan Beilu,
Huadian District,
Beijing, PRC 100048
Timetable
Concept Clearance 25 Jul 2016
Fact Finding 29 Aug 2016 to 05 Sep 2016
MRM 04 Oct 2016
Approval 12 Dec 2016
Last Review Mission -
Last PDS Update 29 Mar 2019

Loan 3504-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Dec 2016 25 May 2017 14 Aug 2017 30 Sep 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1,827.10 Cumulative Contract Awards
ADB 499.60 12 Dec 2016 0.00 0.00 0%
Counterpart 1,327.50 Cumulative Disbursements
Cofinancing 0.00 12 Dec 2016 347.54 0.00 66%

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Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
京津冀区域大气污染防治中投保投融资促进项目(沈阳康禾秸秆生物质综合循环利用子项目): 初始环境审查 Initial Environmental Examination May 2019
京津冀区域大气污染防治中投保投融资促进项目(扎赉特旗地沃秸秆生物质综合循环利用子项目): 初始环境审查 Initial Environmental Examination May 2019
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—China National Investment and Guaranty Corporation’s Green Financing Platform Project: Environmental and Social Management System Implementation Report (July-December 2018) Environmental and Social Monitoring Reports Jan 2019
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—China National Investment and Guaranty Corporation’s Green Financing Platform Project: Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Jan 2019
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—China National Investment and Guaranty Corporation’s Green Financing Platform Project: Environmental and Social Management System Implementation Report (January-June 2018) Environmental and Social Monitoring Reports Nov 2018
京津冀区域大气污染防治中投保投融资促进项目(内蒙古岱海发电厂能效提升和节能减排项目): 初始环境审查 Initial Environmental Examination Sep 2018
Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region-China National Investment and Guaranty Corporation’s Green Financing Platform Project: Environmental Monitoring Report (January–June 2018) Environmental Monitoring Reports Aug 2018
京津冀区域大气污染防治中投保 投融资促进项目-华夏金融租赁有限公司租赁转贷项 目(无棣爱康80MWp 光伏发电项目): 初始环境审查 Initial Environmental Examination Jun 2018
Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region-China National Investment and Guaranty Corporation’s Green Financing Platform Project: Environmental Monitoring Report (May-December 2017) Environmental Monitoring Reports May 2018
京津冀区域大气污染防治中投保 投融资促进项目-北银金融租赁公司项目—张家口万 全 20MW 光伏发电项目 : 初始环境审查 Initial Environmental Examination Apr 2018
京津冀区域大气污染防治中投保 投融资促进项目(北京绿洲德瀚融资租赁子项目): 初始环境审查 Initial Environmental Examination Apr 2018
京津冀区域大气污染防治中投保 投融资促进项目-北银金融租赁有限公司项目—莱芜 杨家峪 40MW 光伏发电项目(一期和二期): 初始环境审查 Initial Environmental Examination Apr 2018
Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region-China National Investment and Guaranty Corporation’s Green Financing Platform Project: Environmental and Social Management System Monitoring Report (August-December 2017) Environmental and Social Monitoring Reports Mar 2018
Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region China National Investment and Guaranty Corporation’s Green Financing Platform Project: Guangrao Initial Environmental Examination Initial Environmental Examination Feb 2018
Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region China National Investment and Guaranty Corporation’s Green Financing Platform Project: Laoling Initial Environmental Examination Initial Environmental Examination Feb 2018
Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region China National Investment and Guaranty Corporation’s Green Financing Platform Project: Laiwu Initial Environmental Examination Initial Environmental Examination Feb 2018
Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region China National Investment and Guaranty Corporation’s Green Financing Platform Project: Jinxiang Initial Environmental Examination Initial Environmental Examination Feb 2018
大京津冀地区空气质量改善 - 中国投资担保公司绿色融资平台项目:初步环境审查 为北江电厂子项目 Initial Environmental Examination Nov 2017
Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region - Green Financing Platform Project: Initial Environmental Examination for Anqiu Shengyuan Biomass Power Plant Subproject Initial Environmental Examination Nov 2017

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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Tenders

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Procurement Plan

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