The Asian Development Bank (ADB) has approved a $200 million loan to finance a green finance project in Ningbo City, China. The project is expected to improve local air quality and public health, and help reduce greenhouse gas emissions, said a press statement by ADB.
It added that the Ningbo Urban Green and Low-Carbon Development Project will focus on building the financial capacities of the Ningbo municipal government, local commercial banks, and micro and small enterprises in climate mitigation and green financing.
The project will also promote green insurance and guarantee systems to lower access barriers to green financing and incentivize energy-saving projects.
The carbon rating system will also be used to facilitate carbon emissions trading and enable financial institutions to prioritize environmentally responsible businesses.
The project is expected to reduce annual greenhouse gas emissions by about 750,000 tons of carbon dioxide, which will contribute to China’s carbon peaking and carbon neutrality goals, said the ADB. The total project cost is expected to be $517.8 million, with funding from the government, beneficiaries, and other sources. The project is planned to be completed in 2029.