World Bank to support China’s war on air pollution
The new operation aims to reduce air pollutants and carbon emissions through increasing energy efficiency and clean energy, with a focus on the Jing-Jin-Ji and neighboring regions—specifically, Beijing, Tianjin, Hebei, Shandong, Shanxi, Inner Mongolia, and Henan.
“Energy efficiency and clean energy are ‘win-win’ options to mitigate both air pollution and climate change simultaneously,” said Wang Xiaodong, World Bank’s Senior Energy Specialist and team leader for the program.
“This Program will contribute to achieving the results of the State Council’s Air Pollution Prevention and Control Action Plan, and help mainstream green financing in banks.”
The Innovative Financing for Air Pollution Control in Jing-Jin-Ji Program has adopted the Program for Results (PforR) instrument for the first time in China and the energy sector.
It is a new lending instrument developed by the World Bank that aims to better link loan disbursements to tangible results on the ground.
The PforR program will support the Hua Xia Bank, a government-designated commercial bank, to provide financing for the enterprises that take action under the Air Pollution Prevention and Control Action Plan.
Achieving the targets under the Air Pollution Prevention and Control Action Plan requires a substantial amount of green financing, the bulk of which is in the form of commercial financing for enterprises. ■