OREANDA-NEWS. May 31, 2013. The “Beautiful China Tour Beautiful Yanzhao – Hebei Government-Banking Conference on Green Finance” jointly sponsored by Industrial Bank (IB) and the Environmental Protection Department of Hebei (the Department) was held in Shijiazhuang.

At the conference, IB Shijiazhuang Branch and the Department signed a strategic cooperation agreement officially, building the banking-government cooperation platform for environmental protection hand-in-hand. IB promised to offer green financing support of RMB 50 billion within the coming three years to lend full support for the construction of “Beautiful Yangzhao”.

In recent years, IB lent active support for the construction of “Beautiful Yangzhao” with green financial tools. By the end of this March, the bank has accumulatively provided financing loans of RMB 9.4 billion in the area of energy conservation and environmental protection across Hebei Province, with the balance of financing loan reaching RMB 4.562 billion, supporting 99 energy conservation and emission reduction projects. At the conference, IB also promised to lend full support for the “Double Thirty” energy conservation and emission reduction projects and development of pillar and characteristic industries in Hebei Province in the coming three years, giving green financing support of RMB 50 billion with preference in terms of loan term and interest rate.

As learnt by the reporter, the financing models signed by both parties include financing for the reduction of pollution emission, namely the bank provides short-term working capital and medium- and long-term project loan services to the borrowers approved by both parties in conformity with the financing requirements for the reduction of pollution emission; emission right pledge-based financing, namely enterprises apply for financing by pledging the emission rights that they have obtained; diversified financing, namely the bank provides all-sided financial services, including bond underwriting, introduction of private equity fund, wealth management and cash management, as well as trade consulting and brokerage service to the borrowers approved by both parties with non-credit financing tools such as financial lease, debt financing and trust. The bank provides trade consulting and brokerage services as well as support financial products and services for the trading of emission rights in the province, with a view to optimize the trading cost of enterprises and alleviating their pressure.

IB indicates that the bank will have the 25 th anniversary of its founding and the fifth anniversary of becoming an Equator bank in China . In order to further support the development of energy conservation and environmental protection in China and boost the building of “Beautiful China”, the bank will launch the serial campaign of “2013 Beautiful China Tour • Green Finance” across the country. Hebei is the first stop of the campaign. The conference attracted more than 80 representatives from government agencies, environmental protection system, financial regulatory authorities, entities under the “Double Thirty” program, and key steel and iron enterprises in the province.

IB indicates that the green finance is an important link to construct ecological civilization and achieve sustainable development of the Chinese nation. It is the responsibility of commercial banks, as the most important pivot for the distribution of resources in modern economic system, to lend vigorous support for energy conservation, emission reduction, and the development of low-carbon economy, push the transformation of economic development model and industrial conversion and upgrading in an active way, facilitate the sustainable development of economy and society, and accelerate the construction of “Beautiful China”.

At home, it still remains at the starting stage to support green transformation with financial innovation, and it is a long and strenuous strategic task for banks either to make innovation in green finance or support the construction of “Beautiful China" and promotion of ecological civilization. Meanwhile, the demands of green finance vary from area to area due to different regional characteristics and unbalanced development. This requires banks to get to the root of market needs and carry out innovation in green finance. Just on that basis, IB launches the campaign of “Beautiful China Tour” to go closer to the regional markets across China , make in-depth industrial survey, listen to the opinions of government agencies and enterprises, serve industrial development and give ideas on regional transformation. Through the tour, the bank plans to support and drive the local energy conservation and emission reduction cause, enhance the development of local energy conservation and environmental protection sectors, and boost the economic and social development in a fast and sound way, thus contributing more green value for the market and society.

As the only bank adopting the “Equator Principles” in China by now, IB has, since 2005, spared no effort to explore the business of green finance and has committed itself to building an all-course professional financial service supplier covering a wide range and an all-sided “green bank”.

In 2013, IB released a brand-new special multi-layered service program covering products, models and solutions – “Green Finance • Tactics (2013)”. At the layer of product, besides the general products of conventional banking, it also includes characteristic products such as financing for energy performance contracting (EPC) by using the future usufruct as the pledge, contract environmental service based financing, carbon assets pledge based financing, emission right pledge-based financing, and energy conservation and emission reduction (CHUEE) financing; at the layer of model, it provides five service models including financing for the production increase of energy-conserving and emission-reducing equipment manufacturer, financing for utilities service supplier, financing for franchised projects, financing for energy management company (EMC) and financing for financing lease company; further, it also provides seven integrated solutions covering carbon trading, emission right trading, conserved energy trading, utilization and protection of water resources, integrated services for industrial chain, industrial consolidation, and financing for special projects. In the meantime, the specialized team for green finance of IB will also develop individualized reconstruction schemes based on the features of all-chain demands of each segment in the area of energy conservation and environmental protection, so as to provide more professional green financial services.

By the end of March 2013, IB has accumulatively provided financing loans of RMB 243.2 billion in the area of energy conservation and emission reduction, with the balance of financing loan reaching RMB 126.9 billion. The projects supported by green finance of IB have saved 23.2455 million tons of coal equivalents across China each year, reduced 67.0502 million tons of carbon dioxide, 889,200 tons of chemical oxygen demand (COD), 15,400 tons of ammonia nitrogen, 43,600 tons of sulfur dioxide, and 11,300 tons of oxynitride, utilized 15.2174 million tons of solid waste in an integrated manner, and saved 255.7906 million tons of water.