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IFC, Bank of Beijing, and Carrier Deepen Cooperation in Energy Efficiency Finance Innovation

Beijing, China, August 25, 2009 —IFC, a member of the World Bank Group, today agreed to provide Bank of Beijing with energy efficiency know-how in support of the bank’s drive to expand financing for projects that help reduce greenhouse gases in China.
Bank of Beijing also signed a strategic cooperation agreement with Carrier Asia Limited, a subsidiary of Carrier Corporation, the world’s largest provider of heating, air-conditioning, and refrigeration solutions. Both agreements broaden the commitment by the three partners to support China’s energy conservation and emission reduction targets.
The Energy Efficiency Finance Technical Assistance Agreement signed today between IFC and Bank of Beijing draws on IFC’s global experience and encompasses marketing, product development, risk control, and due diligence for energy efficiency projects.
“IFC’s expertise will support Bank of Beijing in delivering professional and sustainable energy efficiency finance services,” said Bank of Beijing Chairman Bingzhu Yan. “This program will provide us with a competitive advantage while contributing to sustainable economic development, reducing energy costs, and improving the living environment for citizens in all the markets that we serve.”
The energy efficiency financing products will be promoted in Bank of Beijing’s branches in Shanghai, Tianjin, Xi’an, Shenzhen, Hangzhou, and Beijing. China’s largest city commercial bank has provided 133 million Yuan in energy efficiency finance since commencing collaboration with IFC under the IFC China Utility-based Energy Efficiency Finance Program (CHUEE), with a special focus on small and medium enterprises. The projects will result in an annual reduction of 540,000 tons of heat-trapping greenhouse gases responsible for global climate change.
Bank of Beijing and Carrier Asia signed a novel cooperation mechanism under which Carrier Asia will offer sustainable high-performance building heating and cooling solutions, while the Bank of Beijing will support building owners with the necessary financing consultancy and services for energy savings.
“Carrier is dedicated to providing energy efficiency and sustainable building solutions globally,” said Ross Shuster, President of Carrier Asia. “Through this cooperation with Bank of Beijing, we will be offering building owners with financially and socially compelling justification to improve the energy efficiency of their properties.”
IFC initiated and fostered the strategic cooperation between Bank of Beijing and Carrier Asia. Lars Thunell, IFC Executive Vice President and CEO, said at the signing: “The synergies from the agreements between IFC, Carrier, and Bank of Beijing will provide an important boost for energy efficiency projects in China. Not only will they help reduce greenhouse gas emissions, but will also assist companies in saving energy costs and bringing cleaner air to the people in Beijing and other regions.” Thunell also noted that IFC’s assistance on energy efficiency finance underlines its support for Bank of Beijing’s green banking initiative.
Officials from the China Banking Regulatory Committee, the National Development and Reform Commission and its Beijing branch, and the Beijing Municipal Environmental Protection Bureau welcomed the innovative efforts of all three parties in supporting China’s energy conservation and emission reductions targets.
Funded by IFC, the Global Environment Facility, and the Finnish and Norwegian governments, the IFC China Utility-based Energy Efficiency Finance program (CHUEE) is designed to reduce greenhouse gas emissions by creating a sustainable financing mechanism that provides financial support to energy efficiency and renewable energy projects. IFC offers risk sharing for energy efficiency loans by China’s commercial banks and provides advice on marketing, engineering, project development, and equipment financing services to banks, project developers, and suppliers of energy efficiency products and services. For more information, visit www.ifc.org/chuee . 
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $15 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org .
About Bank of Beijing
Bank of Beijing, established in 1996, is a joint-stock commercial bank with a shareholding structure of overseas investors, numerous local well-known enterprises and public investors. Since its establishment, the bank, relying on the fast and continuous development of capital economy, successfully renamed in 2004, introduced international institutions—ING Group and International Financial Corporation —as overseas investors in 2005, with which Bank of Beijing conducted overall cooperation on corporate governance, risk management, business cooperation, technique assistance and talent training, which greatly accelerated its internationalization and improved competitiveness.
The bank started its geographic expansion in 2006, through which branches in Tianjin, Shanghai, Xi’an, Hangzhou, Shenzhen, and the Hong Kong Representative Office have been established. Bank of Beijing was publicly listed in Shanghai Stock Exchange A-share market in 2007. The bank has successfully fulfilled its major development.
About Carrier Corporation
Carrier Corporation, headquartered in Farmington, Connecticut, is the world’s largest provider of heating, air-conditioning, and refrigeration solutions, with operations in more than 170 countries. Carrier is part of United Technologies Corporation, a Hartford, Connecticut-based provider of products and services to the aerospace and building systems industries worldwide.
In the 1980s Carrier was the first American air-conditioning manufacturer to invest in China. Headquartered in Shanghai, Carrier now has more than 2,200 employees and distributes products in China through a network of more than 40 sales and service offices. With over two decades of experience in China, Carrier has contributed its professional sustainable building solutions to many prestigious landmark buildings in China, including some key 2008 Beijing sports venues such as the “Water Cube” National Aquatics Center and some of the 2010 Shanghai Expo’s special event venues. For more information, visit www.carrier.com .