Luxembourg, 05/12/2007 (Agence Europe) - At the 10th EU-China summit in Beijing on 28 November (see EUROPE 9552 and 9553), the European Investment Bank (EIB) granted a loan of €500 million to the People's Republic of China to support its efforts to mitigate climate change, in particular under China's National Climate Change Programme. The EIB loan falls within the context of the EU-China Partnership on Climate Change, launched in 2005.
The EIB's China Climate Change Framework Loan is a large-scale multi-investment scheme designed to support investment projects in the energy and industrial sectors that will help to prevent or reduce greenhouse gases and other polluting emissions. A broad range of project categories will be eligible for EIB financing, including projects using renewable energy sources, energy efficiency enhancement, the capture and use or storage of greenhouse gases, and afforestation projects. The EIB facility will benefit a broad range of project promoters, including central or provincial government agencies, municipalities, public utilities and companies, including public-private partnerships (PPPs) and public-private joint ventures.
The projects to be supported by the EIB will be identified by China's National Development and Reform Commission and the Ministry of Finance. Individual schemes will be selected by the Bank, appraised by its staff and submitted individually to its decision-making bodies. The Bank will ensure that the projects supported under this facility are sound and implemented satisfactorily, in compliance with the EIB's environmental and social requirements. During the implementation of this facility, priority will be given to projects that: - result in a significant reduction in greenhouse gas emissions; - have the potential to generate CDM (Clean Development Mechanism) carbon credits; - and can lead to co-financing with other international and/or bilateral financial institutions.
This is the first loan provided by the EIB under the €3 billion Energy Sustainability and Security of Supply Facility authorised in June 2007 by the Governors of the Bank (EU Economy and Finance Ministers) to enhance EU action addressing climate change and security of energy supplies. (O.L.)