The Asian Development Bank (ADB) has approved a $200 million loan aimed at advancing inclusive, low-carbon, and environmentally sustainable development in Ningbo City, located in Zhejiang province, People’s Republic of China (PRC).
Ningbo is a key economic hub in the Yangtze River Delta and a significant center for energy production and new materials industries in China, heavily reliant on fossil fuels.
This first ADB-financed initiative marks will focus on enhancing the institutional and financial capacities of the Ningbo municipal government, local commercial banks, and micro and small enterprises in climate mitigation and green financing.
The project will introduce innovative strategies to curb greenhouse gas emissions and enhance air quality. This includes piloting a green insurance and guarantee system to facilitate easier access to green financing and incentivize energy-saving projects. Additionally, a climate financing platform will support the adoption of new low-carbon technologies, particularly benefiting micro and small enterprises and energy service companies, with a special emphasis on businesses led by women.
The initiative also introduces a carbon rating system to pave the way for future carbon emissions trading. This system will enable financial institutions to prioritize environmentally responsible enterprises and increase financing opportunities for businesses with lower carbon footprints.
Expected to reduce annual greenhouse gas emissions equivalent to 750,000 tonnes of carbon dioxide, the project aligns with China’s goals for carbon peaking and neutrality. The total project cost amounts to $517.8 million, with contributions from the government, beneficiaries, and other funding sources. Completion is anticipated by 2029.
“The Ningbo Urban Green and Low-Carbon Development Project aims to provide a model for cities that have similar challenges of decoupling economic development from carbon emissions as Ningbo does,” said ADB Country Director for the PRC Safdar Parvez. “The project is expected to benefit 9.6 million residents in Ningbo by improving local air quality and public health.”