European Investment Bank will offer 500 million euro loans to some 10 projects in China to reduce greenhouse gas emission, said Mr. Philippe Maystadt, President of the EIB in Beijing Thursday, one day after he signed the agreement with the Ministry of Finance of China during the China-EU Summit.
With a maturity of 25 years, the Climate Change Framework Loan will be granted through the Ministry of Finance to projects jointly selected by the EIB and China National Development and Reform Commission, according to Mr. Maystadt.
He stressed that there was no obligation to use European technologies in those projects because environment was a global issue.
Priorities will be given to projects which will significantly reduce the greenhouse emission or have the potential to produce carbon credit through CDM (clean development mechanism) in China. They will involve renewable energy, clean energy and energy efficiency, for example, wind energy, carbon capture or biomass energy.
The contract has also specified the "formula" of calculating the interest rate of the loan, said Mr. Maystadt.
He added that he had also discussed with the Chinese authorities about future cooperation, on transport, for example. In those fields the use of European technologies may be a requirement.
Besides the Climate Change Framework Loan, the EIB has so far invested four projects in China. One of them was the 500 million euro loan for the extension of Beijing Capital Airport in 2005.
The Ministry of Finance announced on Nov. 26 to earmark 23.5 billion yuan ($3.2 billion) to improve energy efficiency and cut pollutant emission.
Chinese Premier Wen Jiabao declared at the China-EU Business Summit on Nov.28 that China would invest 300 billion USD on energy-efficiency and environmental protection in the next five years, which is 30% of the total on the world market. He encouraged expansion of the cooperation between China and EU on energy-efficiency and environmental protection.
By People's Daily Online