fbpx 51033-001: Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Green Financing Scale up Project | Asian Development Bank

China, People's Republic of: Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Green Financing Scale up Project

Sovereign (Public) Project | 51033-001 Status: Approved

The proposed project uses the financial intermediation loan modality, which is the best fit to support geographically scattered investments while maximizing ADB's loan leveraging capacity through revolving the loan fund and mobilizing domestic funds. It aims to address emerging challenges in air quality improvement and GHG emission reduction in both the greater BTH and YRD regions through energy efficiency, cleaner transport systems development, renewable energy development, and cooling systems retrofit. It also stimulates post COVID-19 recovery investment with build-back-better principles by continuously scaling up clean energy technologies and systems applications in the targeted regions, which account for around 50% of the gross domestic product in the PRC.

Project Details

Project Officer
Zhang, Lei East Asia Department Request for information
Country
  • China, People's Republic of
Sector
  • Energy
 
Project Name Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Green Financing Scale up Project
Project Number 51033-001
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4023-PRC: Air Quality Improvement in the Greater Beijing Tianjin Hebei Region Green Financing Scale up Project
Ordinary capital resources US$ 150.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

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

Finance / Finance sector development

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed project uses the financial intermediation loan modality, which is the best fit to support geographically scattered investments while maximizing ADB's loan leveraging capacity through revolving the loan fund and mobilizing domestic funds. It aims to address emerging challenges in air quality improvement and GHG emission reduction in both the greater BTH and YRD regions through energy efficiency, cleaner transport systems development, renewable energy development, and cooling systems retrofit. It also stimulates post COVID-19 recovery investment with build-back-better principles by continuously scaling up clean energy technologies and systems applications in the targeted regions, which account for around 50% of the gross domestic product in the PRC. The project will support key strategic pillars of ADB's Strategy 2030: (i) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability by accelerating low greenhouse gas emissions development and ensuring environmental sustainability; (ii) strengthening governance and institutional capacity by providing inclusive financial services for clean energy investment; and (iii) accelerating progress in achieving gender equality through gender mainstreaming activities.
Project Rationale and Linkage to Country/Regional Strategy Asian Development Bank (ADB) and the Government of the People's Republic of China (PRC) agreed in 2015 to establish a multiyear lending program (2015 2020), which aims at mutually reinforcing the government actions in air pollution reduction in the greater Beijing Tianjin Hebei (BTH) region. Since 2015, ADB has approved around $2,000 million in loans under the multiyear lending program that have been successfully implemented so far. In 2015, ADB approved the first policy-based loan in the PRC, which focused on policy reforms and regulatory capacity strengthening in Hebei Province. In 2016, the second loan was approved to scale up investment in air pollution reduction projects in the region by enabling better access to finance, especially for small- and medium-sized enterprises (SME). In 2017, the third loan was approved to support deploying high-level technologies in major polluting entities across key sectors in the region. In 2018, the fourth loan was approved to help Shandong Province adopt more efficient and advanced technologies for heat production and refrigeration by replacing coal with cleaner sources such as natural gas, renewable energy and waste heat recovery. In 2019, the fifth loan was approved to accelerate a switch to cleaner fuel, that is from coal to natural gas and biogas for residential, commercial, and industrial use to improve air quality in Henan Province. The proposed project will be the sixth and final loan under the program.
Impact Air quality and public health in the greater BTH and YRD regions improved
Project Outcome
Description of Outcome Air pollutants and greenhouse gas emissions reduced
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Green Financing Platform operation expanded

Credit enhancement scheme developed

Access to inclusive finance improved

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide, Anhui, Beijing, Hebei, Henan, Inner Mongolia, Jiangsu, Liaoning, Shaanxi, Shandong, Shanghai, Tianjin, Zhejiang
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
Responsible ADB Officer Zhang, Lei
Responsible ADB Department East Asia Department
Responsible ADB Division EASI
Timetable
Concept Clearance 24 Aug 2020
Fact Finding 07 Sep 2020 to 11 Sep 2020
MRM 14 Oct 2020
Approval 03 Dec 2020
Last Review Mission -
Last PDS Update 03 Dec 2020

Loan 4023-PRC

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 650.78 Cumulative Contract Awards
ADB 150.00 - 0.00 0.00 %
Counterpart 500.78 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

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