European bank loans €134M to reduce CO2 emissions in China

The European Investment Bank (EIB) said it is loaning €134 million ($202.3 million) to four projects in China that are expected to help reduce 830,000 tons of carbon dioxide emissions annually, once the projects are completed.

The EIB signed the China Climate Change Framework Loan agreement in 2007, and has since allocated €334 million, of €500 million available, to 20 projects. When all the projects are operational, they are expected to help reduce emissions by 1.57 million tons per year.

The four recent projects are also expected to apply for the Kyoto Protocol’s Clean Development Mechanism registration for carbon credit generation.

Here’s a breakdown of where the loans are going:

• One €31 million project includes transforming the district heat system for the city of Jinan, the capital of Shandong Province. The system will move from steam supply to hot water, improving the system’s automation. Additional benefits include increased energy efficiency, reduced greenhouse gas emissions, and less water consumption.
• Another €29 million project includes installing energy efficient lighting, power by solar energy, in Chaoyang City, Liaoning Province, including street, building, landscape and lawn lighting. Batteries will store energy produced by the photovoltaic modules.
• With €44 million, the EIB is supporting 10 small-scale hydropower plants, with a total capacity of 62 megawatts, which is expected to increase the use of renewable energy in Yichang City, Hubei Province. The projects plan to focus on mitigating environmental and social impacts. 
• The EIB is also supporting the construction and operation of a sodium carbonate and ammonium chloride co-product plant, using carbon dioxide currently vented from an existing fertilizer complex. The €30 million project, located in Qiaokou Township, Hunan Province, is expected to allow the use of residual heat, waste gas streams, and solid residues to produce energy.

The EIB operates in 27 European Union member states and more than 130 other countries, with loans in the cleantech sector ranging from supporting the development of fuel-efficient vehicles to wind farms (see Who is next for $17B in DOE auto loans? and Grid problems slow adoption of wind energy in Romania).

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