Beijing, December 13, 2017
—IFC, a member of the World Bank Group, is launching an innovative framework to encourage Chinese commercial banks to mainstream green finance and channel more capital into climate-smart investments. China Ma’Anshan Rural Commercial Bank has signed an agreement with IFC, and will be the first partner to adopt the framework.
Through this framework, IFC aims to help establish three to five dedicated green commercial banks and enable them to meet a range of minimum standards, which include the following:
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that 60 percent of the total outstanding loans are for climate-friendly projects
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that 70 percent of the total bank products are green financial instruments
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that 80 percent of bank employees obtain international green finance certificate
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that the bank achieves 100 percent carbon neutrality
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that 100 percent of the bank-owned properties are green building certified
“Our experience shows that green finance is essential in channelling capital and resources into China’s low-carbon economic growth,” said Randall Riopelle, IFC’s Country Manager for China, Korea and Mongolia. “This framework will help Chinese banks to further expand the green finance market and demonstrate a model for replication in other emerging markets.”
Since 2012, when China introduced Green Credits, it has established the world’s biggest green credit market worth more than $1 trillion. Green credit now comprises almost 10 percent of China’s total loan portfolio. China’s onshore green bond market also grew rapidly, with a total issuance of around $30 billion in 2016.
From renewables, green building, agribusiness, and waste-treatment, to low-carbon urban transportation, China is a key driver in global growth of demand for climate-smart technologies. The country is now accounting for nearly half of all new renewable projects and is the world’s third largest investor in rooftop solar.
“We are committed to integrating green objectives in our core operations to become a dedicated green bank. We hope to draw on IFC’s expertise in green finance and become China’s first green commercial bank with international standards,” said SUN Xiao, Chairman of Ma’Anshan Rural Commercial Bank. “We welcome this partnership, where IFC will provide us with the framework and support that we need. This will help us increase our support to China’s climate-smart industries, promote ecological conservation, support environmental recovery, and contribute to the financial sector’s social responsibilities.”
The framework, designed by IFC’s China Climate Finance Program, builds on the success of IFC’s work with Chinese regulators and banks on greening the banking sector through investment, capacity building and policy advice over the past 10 years.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit
www.ifc.org
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