CHUEE Jiangsu Project Signed in Beijing
2016-05-08
The signing ceremony of China Utility and Energy Efficiency Finance Program (CHUEE) of Jiangsu province was held in Beijing on 27th November 2012. Present on the ceremony were Finance Minister Xie Xuren, Vice Governor of Jiangsu Li Yunfeng, Assistant Minister Zheng Xiaosong, World Bank President Jim Yong Kim, and EVP&CEO of International Finance Corporation(IFC) Jin-Yong Cai.
The CHUEE Jiangsu Project was sponsored by China CDM Fund, international department of Ministry of Finance, finance bureau of Jiangsu province and IFC. All relevant parties pledged to provide 462 million RMB, of which 372 million was from IFC. By providing risk-sharing for energy efficiency loans of Bank of Jiangsu, the project could increase the scale of energy efficiency loans, support the investment of private enterprises in energy efficiency, renewable energy and relevant equipment manufacturing industry. CHUEE Jiangsu project was expected to help Bank of Jiangsu issue 924 million RMB worth of loan, and reduce carbon emissions by 1.03 million tons.
In this program, both public and private capital generatd mutiple productive effects. Public fund, as seed capital, attracted more market investment in low carbon development. The design of risk sharing facility increased credit issuance of the bank, without lessening the responsibilities of bank on loan review and risk management. Moreover, through cooperation with international financial institutions, local commercial banks could boost capacity building and loan business.
Assistant Minister Zheng Xiaosong said that CHUEE Jiangsu project represented a useful trial by national finance department on the way of supporting low carbon development.
He stressed ecological civilization in the process of building a beautiful China. To achieve this goal, we need to draw lessons from international experiences and carry out institutional innovation to confront climate change challenges. We hope that CHUEE Jiangsu project could not only provide financial support to enterprises in Jiangsu but also set an example of successful cooperation between public and private departments.
Vice Governor of Jiangsu province said in his speech that CHUEE Jiangsu project marked the first cooperation between Jiangsu financial departments and IFC with the support of MOF and China CDM Fund. This cooperation model smartly utilized market to leverage social capital for energy efficiency and emission reduction. Jiangsu government will further improve the incentive mechanism and create a sound environment for the implementation of CHUEE Jiangsu project.
President Jin-Yong Cai of IFC said that IFC was committed to making use of market solutions to confront challenges from climate change, including providing financing service for green power generation project, policy-making, helping banks increase profit without compromising the environment, etc. CHUEE Jiangsu project was one of the examples. This program, through risk and knowledge sharing, helps banks provide new financing model for government and boosted the productivity and energy efficiency of small and medium sized companies. Meanwhile, this program also brought high investment return for IFC.
President Jin-Yong Cai of IFC said that IFC was committed to making use of market solutions to confront challenges from climate change, including providing financing service for green power generation project, policy-making, helping banks increase profit without compromising the environment, etc. CHUEE Jiangsu project was one of the examples. This program, through risk and knowledge sharing, helps banks provide new financing model for government and boosted the productivity and energy efficiency of small and medium sized companies. Meanwhile, this program also brought high investment return for IFC.
CHUEE Jiangsu project symbolized an important trial for China CDM Fund in the process of exploring innovative low carbon financing model. It enhanced the role of guidance of CDM Fund as policy fund, enriched investment means, and better served the cause of tackling climate change.
Page Views : 208
