ADB Approves $200M Loan for Green and Low-Carbon Development in Ningbo, China

Ningbo, a key economic hub in the Yangtze River Delta and a significant base for energy production and new materials industries in China, currently faces challenges associated with heavy reliance on fossil fuels.

The Asian Development Bank (ADB) has greenlit a $200 million loan aimed at promoting inclusive, low-carbon, and environmentally sustainable development in Ningbo City, located in Zhejiang province, People's Republic of China (PRC).

Ningbo, a key economic hub in the Yangtze River Delta and a significant base for energy production and new materials industries in China, currently faces challenges associated with heavy reliance on fossil fuels.

According to ADB Country Director for the PRC, Safdar Parvez, the "Ningbo Urban Green and Low-Carbon Development Project" seeks to establish a blueprint for cities grappling with the task of decoupling economic growth from carbon emissions. The initiative is projected to benefit approximately 9.6 million residents of Ningbo by enhancing local air quality and public health outcomes.

Marking ADB's inaugural financing initiative in Ningbo City, the project will concentrate on bolstering the institutional and financial capabilities of the Ningbo municipal government, local commercial banks, and micro and small enterprises in the realms of climate mitigation and green finance.

Key components of the project include innovative strategies to curtail greenhouse gas emissions and improve air quality. These include piloting a green insurance and guarantee system aimed at reducing barriers to accessing green finance and promoting energy-saving projects. Additionally, a climate financing platform will be established to support the adoption of new low-carbon technologies, particularly by micro and small enterprises and energy service companies, with a specific emphasis on enterprises led by women.

Furthermore, a carbon rating system will be introduced to facilitate future carbon emissions trading and enable financial institutions to prioritize environmentally responsible businesses, thereby increasing financing opportunities for enterprises with lower carbon footprints.

The project is anticipated to achieve an annual reduction of greenhouse gas emissions equivalent to 750,000 tons of carbon dioxide. This contribution aligns with the carbon peaking and carbon neutrality objectives set forth by the Government of the PRC.

With a total project cost amounting to $517.8 million, funding will be sourced from government counterparts, beneficiaries, and various other contributors. The project is slated for completion in 2029.