China Development Bank (CDB) and Green Climate Fund (GCF) recently signed a new memorandum of cooperation (MoC). Further focusing on achieving the peak carbon and carbon neutrality goals, multinational cooperation should be enhanced on the basis of the excellent collaboration in the early stage. By leveraging their advantages and experiences in the field of green finance, the two parties will carry out capacity building and knowledge sharing in such areas as climate project development, structured solutions for green infrastructure projects, climate investment standards, and project impact assessment. In addition, cooperation opportunities will be explored in the area of climate change mitigation and adaptation in developing countries. Ouyang Weimin, President of CDB, and Yannick Glemarec, Executive Director of GCF, signed the MoC on behalf of the two parties.
It is reported that CDB is the first China-funded financial institution that has reached an MoC with GCF. Over the years, by implementing the philosophy of green development and following the principle of responsible financing, CDB has been proactively supporting the green transformation of China’s economic and social development models and contributing to building a green Belt and Road. CDB has been working hard to advance green credit business, and explore and diversify green financial products to support the development of green industries by promoting a number of major demonstration pilot projects for ecological and environmental protection. So far, CDB has issued a total of 90 billion yuan of RMB-denominated green financial bonds, with a green credit balance exceeding 2.3 trillion yuan (about 350 billion USD), maintaining its position as the leading green credit bank in China. In addition, by referring to relevant guidelines of the United Nations Global Compact, CDB has established a complete set of environmental and social impact assessment systems to effectively support overseas projects for clean energy and people’s livelihood. In accordance with international ecological and environmental protection concepts and related protocols, CDB has guided and restricted enterprises in developing, constructing and operating their projects to help realize economic, social and ecological benefits.
GCF is the operating entity of the financial mechanism of the United Nations Framework Convention on Climate Change and the Paris Agreement. As the world’s largest climate fund, GCF is mandated to support developing countries’ efforts in reducing carbon emissions, adapting to the impact of climate change, strengthening climate resilience, and achieving sustainable development.
Looking ahead, CDB will fully implement the concept of green development, and vigorously develop green finance. By increasing international cooperation and exchanges with multilateral institutions such as GCF in the fields of green and low-carbon development and response to climate change, CDB will draw experience from international practices, and enhance mutual trust and consensus, as part of an effort to achieve the peak carbon and carbon neutrality goals.
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