Industrial Bank Co., Ltd. And CDM Fund Reached A Cooperation Agreement To Jointly Innovate A Green Financing Model For Clean Development
03 Sep, 2019

Content: On September 2, Industrial Bank Co., Ltd. signed the Green Financial Cooperation Agreement with the Management Center of China Clean Development Mechanism Fund (hereinafter referred to as “CDM Fund”), to jointly innovate a green financing model for clean development in order to support the country’s response to climate change and help local economies’ green transformation. At the same time, the first project under the cooperation mode is being implemented in Wenzhou, Zhejiang Province.

According to the Agreement, the two sides will, in accordance with the national eco-environmental protection plan and energy conservation and emission reduction targets, play out the guidance and leverage role of the Fund and the green finance capabilities and advantages of the Industrial Bank Co., Ltd. to innovate a green financing model for clean development. They will jointly promote business cooperation and product innovation such as green financing and investment, green bonds, green wealth management and other environmentally friendly cooperation. They will cooperate in green financial policy research, participate in relevant standards research and formulation, and accelerate the construction of China’s green financial system and ecological civilization. According to Mr. LUO Shiyi, General Manager of the Green Finance Department of the Industrial Bank Co., Ltd., the innovative green financing model that the two sides are working on will provide financing support for projects through three mechanisms: One is the Industrial Bank Co., Ltd. to lend the Fund’s money as it is entrusted by the Fund. Second, the Bank provides guarantees for the funds provided by the Fund, to guarantee security of the policy fund while supporting low-carbon projects. And third, the Bank and the Fund jointly provide loans for enterprises, while the Bank provides guarantees for the funds provided by the Fund.