Investment

China CDM Fund’s investment, taking forms of concessional loan, equity investment and financial guarantee and other innovative means, supports industrial activities that generate actual emission reduction effects. Three-year concessional loan with interest rate 15% lower than benchmark rate has been the major way of investment up to now.

Concessional Loan

China CDM Fund cooperates with commercial bank and local government, provides concessional loans to enterprises engaged in climate change mitigation and adaptation activities.

By October 2013, the Fund has allocated 5.92 billion yuan of concessional loan to support 97 projects in 20 provinces, and leveraged 31.459 billion yuan of market capital. Over half the projects are from SMEs, and they take up over half of concessional loans. These projects generate over tens of millions tons of tCO2e of expected emission reduction and potential. 

Equity Investment

In 2011, China CDM Fund invested in Shanghai Environment and Energy Exchange to support the construction of the pilot trading platforms in China, sending a clear signal of government determination to seek market solution for low carbon growth.

Innovative Financing Model

In 2012, China CDM Fund worked with International Finance Corporation (IFC) and local government (Jiangsu Province) to leverage commercial bank’ low carbon loans through risk-sharing facility within the province for the first time (CHUEE Jiangsu Project), to support projects on EE, RE and related equipment manufacturing. In CHUEE Jiangsu Project, RMB 30 million of public funds covers first loss, where RMB 5 million from CCDMF, leveraging RMB 924 million of commercial bank loan, with a leverage ratio of 1:30. In this case, public fund worked as seed money and leveraged a large scale of commercial bank’s capital for low carbon development.