China Development Bank signs MoC with Green Climate Fund

China Development Bank has signed a new round of Memorandum of Cooperation with the Green Climate Fund recently.[Photo/IC]

China Development Bank has signed a new round of Memorandum of Cooperation with the Green Climate Fund recently. 

According to the MoC, the two sides will work, on the basis of early good cooperation, on realizing the goal of peaking carbon emissions before 2030 and achieving carbon neutrality before 2060, and raising multinational cooperation to a higher level. 

The two sides will effectively leverage their advantages and experiences in the field of green finance, and bring forward communications and capacity, building on several fronts including climate project development, developing structured solutions for green infrastructure projects, climate investment standards and project impact assessment. 

By doing so, the two sides expect to explore more windows of cooperation in helping developing countries to better adapt to climate change.

Ouyang Weimin, president of CDB, and Yannick Glemarec, executive director of the Green Climate Fund, signed the MoC on behalf of the two sides.

Reports show that CDB is the first China-funded financial institution that the Green Climate Fund has signed a cooperation agreement with. Over the years, the bank has been implementing the concept of green development and adhering to the principle of responsible financing. It has been actively supporting the green transformation of China's economic and social development module and contributing in the construction of building a green Belt and Road.

On the one hand, CDB has vigorously promoted green credit by enriching green financial products and helping green industries to grow, and has developed a number of pilot programs in ecological protection. So far, CDB has issued a total of 90 billion yuan ($14.1 billion) of green financial bonds in renminbi, with outstanding green loans exceeding 2.3 trillion yuan thereby retaining its position as China's leading green credit bank. 

On the other hand, by referring to relevant guidance from the United Nations Global Compact, the bank has established a complete set of environmental and social impact assessment systems to actively support overseas clean energy and livelihood projects. 

Such efforts have both guided and confined businesses in developing, constructing and operating their projects in accordance with global ecological and environmental protection concepts and regulations, so as to realize economic, social and ecological benefits.

The Green Climate Fund is the operating entity of the financial mechanism of United Nations Framework Convention on Climate Change and the Paris Agreement, and it is the world's largest climate financing fund. It mainly supports developing countries in reducing carbon emissions, coping with the impact of climate change, improving their climate resilience, and achieving sustainable growth.

Going forward, CDB will substantively implement the green development concept into operation and push forward with green finance growth. The bank will enhance international cooperation and exchanges with the Green Climate Fund and other multilateral institutions in the fields of low-carbon growth and climate change, learn from global experience, and enhance mutual trust and consensus to contribute to the country's efforts of achieving its goals of peaking carbon emissions and reaching carbon neutrality on promised dates.