China launches $12b National Green Development Fund
China has raised an initial RMB88 billion ($12.6 billion) for the first dedicated environmental fund launched by the central government.
The National Green Development Fund's (NGDF) first close includes RMB8 billion contributions from Industrial & Commercial Bank of China, Bank of China, and Agricultural Bank of China. Each one accounts for 9% of the fund's registered capital.
NGDF was formally launched in July by the Ministry of Ecology & Environment (MEE), the Ministry of Finance, and the Shanghai municipal government, according to China Daily. Capital commitments have come from 26 institutions, including RMB28.6 billion from the Ministry of Finance itself and the governments of 11 provinces and cities in the Yangtze River basin.
A further RMB57.5 billion will come from financial institutions and RMB2.4 billion from state-owned and private enterprises.
The fund will primarily invest in national strategic programs such as the green development of the Yangtze River region. It aims to accelerate the green transformation and upgrade of industrial infrastructure. Another objective is to encourage private investment into areas like pollution controls, environmental protection, land greening, energy conservation, and clean energy.
The MEE announced plans for the NGDF last December, according to the government’s website. It is part of a wider effort to promote green finance, including environmental protection credits. "Policies on pollutant emission rights and ecological compensation will see further improvements to provide guarantee and support for the battle against pollution," said Bijiu Xu, a MEE official.
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