The International Finance Corporation (IFC) has recently launched a risk-sharing facility to support clean energy development in China’s Jiangsu province.
A member of the World Bank Group, the IFC finances investments and provides advisory services in support of sustainable growth in developing markets.
The IFC runs the “China Utility-Based Energy Efficiency Finance Program”, established in 2006, to help the central and provincial governments of China address climate change. To date, the initiative has provided loans to 178 energy efficiency and renewable energy projects which have reduced greenhouse gas emissions by 19 million tons/year.
The overall aim of the new agreement is to mitigate risk for the Bank of Jiangsu when financing climate-friendly projects, in addition to supporting loans for sustainable energy projects. Funding is being provided by the Ministry of Finance of China, the China Clean Development Mechanism Fund, and the Jiangsu Provincial Finance Department.
This agreement not only advances energy efficiency in China, it also demonstrates that climate mitigation and efficiency can be good business.