Supporting green finance in partnership with three Chinese banks

In the mid-2000s, private investments in energy efficiency and renewable energy in China only accounted for approximately 6% of investments in the energy sector.

In recent years, the Chinese government has adopted a significant number of regulations and guidelines promoting green finance activities. AFD was one of the first donors to enter a partnership with Chinese banks to promote this type of investment.

In 2007, AFD initiated a partnership with three Chinese banks–Shanghai Pudong Development Bank (SPDB), Huaxia Bank and China Merchants Bank (CMB)– through two “green” credit lines to finance companies investing in the sectors of energy efficiency and renewable energy in China.

These credit lines are further supported by technical assistance. With support from the French Global Environment Facility (FFEM), a group of Franco-Chinese experts specialized in green energy advised the banks and their customers in process of Facility (FFEM) project selection, technology to be used and the analysis of the energy efficiency forecast. Another component of this program, handled by the partner banks, is the development and reinforcement of their teams’ specific skills in this area.

• 90 energy efficiency and renewable energy projects in 22 Chinese provinces benefited from AFD funding;

• The project relied on high-level, Franco-Chinese expertise to strengthen skills in green finance in the banking sector;

• Close to 9,000 bankers have received training on climate issues.