The Asian Development Bank (ADB) has approved a US$200 million loan to promote inclusive, low-carbon and environmentally sustainable development in the city of Ningbo, Zhejiang Province, People’s Republic of China (PRC).
Ningbo is one of the economic centers of the Yangtze River Delta and an important base for energy production and new materials industry in the PRC. It is heavily dependent on fossil fuels.
“The Ningbo Low Carbon and Green Urban Development Project aims to serve as a model for cities facing similar challenges to Ningbo in decoupling economic development from carbon emissions,” said Safdar Parvez, ADB Country Director for the People’s Republic of China. “The project is expected to benefit 9.6 million residents in Ningbo by improving local air quality and public health.”
The project, the first funded by ADB in Ningbo City, will focus on developing the institutional and financial capacities of the Ningbo municipal government, local commercial banks, and micro and small enterprises in climate change mitigation and green finance.
ADB and City Group partner to support food security in Bangladesh
The project will also demonstrate innovative approaches to reduce greenhouse gas emissions and improve air quality. One of them is a pilot green insurance and guarantee system that reduces access barriers to green finance and incentivizes energy-saving projects. Another is a climate finance platform to support new low-carbon technologies, micro and small businesses, and energy service companies, with a special focus on women-owned or women-led businesses.
The carbon rating system will facilitate carbon emissions trading in the future and enable financial institutions to give priority to environmentally responsible companies and provide more financing to private companies with lower carbon footprints. It is expected to reduce annual greenhouse gas emissions by an equivalent of 750,000 tons of carbon dioxide, thus contributing to the PRC Government’s carbon reduction and neutrality goals.
The project, the first funded by ADB in the city of Ningbo, will focus on developing the institutional and financial capacities of the municipal government
The total cost of the project is $517.8 million, with counterpart funding from the Government, beneficiaries and other sources. Its completion is scheduled for 2029.
The ABD is committed to achieving a prosperous, inclusive, resilient and sustainable Asia and the Pacific region, while continuing its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members – 49 from the region.
Add Comment