China secured an additional 500 million euro ($665.3 million) loan from the European Investment Bank to fund its climate change mitigation efforts.
The second loan will fund up to 15 projects that develop renewable energy sources and improve energy efficiency.
This will include renewable energy projects based on onshore wind, biomass, solar photovoltaic, concentrating solar power, geothermal and small hydro; projects in energy efficiency and greenhouse gas reduction on industrial sites; and district heating that will promote energy efficiency and clean energy use.
China’s National Development and Reform Commission and its Ministry of Finance will identify the projects, but the bank will choose individual schemes in line with its own economic, financial and social feasibility guidelines.
The second China Climate Change Framework Loan follows a similar 500 million loan received in November 2007. Currently the program has approved more than 80 percent of its first framework loan.
“It is estimated that up to 3 million metric tons of carbon dioxide will be saved every year with its first climate change framework loan and we are looking forward to achieving the same performance with this second framework loan,” said Magdalena Álvarez Arza, the bank’s vice president.
The loan will come from the bank’s 3 billion resource which aims to support renewable energy and energy efficiency projects in non-European Union countries.
The bank is authorized to grant up to 3.8 billion euros in funding for climate change operations tin Asia and Latin America. The funds are split into 2.8 billion euros and 1 billion euro for Latin America and Asia, respectively.
