Brussels, 08/04/2009 (Agence Europe) - Drawing from the China Climate Change Framework Loan (CCCFL), signed with the People's Republic of China in November 2007, the European Investment Bank (EIB) is providing a total of €220 million in three operations that will contribute to the mitigation of climate change, as follows:
€50 million will part-finance two forestation programmes: (a) the establishment of a “bio-energy forest” through permanent tree plantation for biodiesel and edible oil production; the project will be implemented throughout the Jiangxi province; and (b) the establishment of permanent plantations with an environmental focus, contributing to erosion/desertification control and carbon sequestration; the programme will be implemented throughout the Inner Mongolia Autonomous Region.
The construction of four wind farms with a total installed capacity of 254 MW, by four promoters located in three different provinces, namely Henan, Hainan and Guangdong. The project will increase the share of renewable energy production in the general power generation mix in China. A total amount of €135 million will be allocated to these projects.
The installation and operation of energy efficiency and pollution reduction equipment in the coking plant of an existing steel plant located in the Guangdong province, producing long products and plates to supply the regional market, mainly for construction and shipbuilding. The new equipment will reduce emissions of greenhouse gases and other pollutants, as well as improving energy efficiency, thereby contributing to the mitigation of global climate change. This project will receive a €35 million loan.
All projects will seek Clean Development Mechanism, CDM, registration for carbon credit generation. As of today, one of the wind farm project promoters has signed up to the “Post-2012 Carbon Credit Fund” designed to provide an incentive to project promoters to pursue CDM registration beyond the end of the Kyoto protocol.
The three operations are in line with the China Climate Change (CCC) Framework Loan objectives and will contribute to the European Union-China Strategic Partnership, which among other things provides for joint efforts to mitigate climate change, in particular under China's National Climate Change Programme. Furthermore, the afforestation project is likely to entail a transfer of know-how from the EU to China, which is one of the aims fixed for EIB operations in Asia. The Bank stresses in a press release that the three operations were suggested shortly after the signing of the loan framework, which, it says, shows the very strong resolve of the Chinese authorities to reach their objectives in combating climate change. (O.L./transl.jl)