It is learned from China Development Bank (CDB) that since it joined hands with the Ministry of Ecology and Environment (MEE) and the National Development and Reform Commission (NDRC) of the PRC in promoting the pilot projects of environment-oriented development (OED) in 2020, it, by the end of 2022, has granted loans amounting to 22.5 billion yuan for 25 projects, covering such fields as water eco-environment protection, recycling of waste resources, agricultural and rural pollution control, and ecological conservation and restoration. According to relevant statistics, CDB topped the list among the peers in terms of both the number of OED pilot projects of the Ministry it supported and the amount of the loans it granted.
Eco-environment governance projects have great difficulties in fund raising due to their public welfare purpose, large investing amount, long return period, high environmental risk, and low rate of return. In recent years, EOD has become a new attempt to guide financial and social funds to this field. Based on ecological protection and environmental governance, with the operation of supporting special industries, OED is carried out through comprehensive regional development to drive eco-environment governance projects with a low yield rate for the purpose of public benefits to integrate with projects of related industries with a high yield rate by means of industrial chain extension, joint operation, and combined development. An EOD project is planned and implemented by a market player in a holistic way, integrating eco-environment governance into the whole project as an investment factor to carry out construction, operation and maintenance in an integrated manner. The project aims at internalizing the economic values brought by eco-environment governance and strives to realize the balance of overall benefits and costs within the project boundaries. As a creative way of project organization and implementation, EOD helps attract financial institutions and social capital to participate in projects actively. Experts believe that EOD, putting the idea “lucid waters and lush mountains are invaluable assets” into practice, is an important attempt to strengthen the investment and financing in ecological and environmental protection, realize the value of the ecological industry, support the further protection against pollution prevention and promote ecological civilization.
It is said that MEE, NDRC and CDB joined their efforts to promote EOD pilots, with an aim to explore effective ways to integrate the eco-environment governance projects with resources and industrial development projects so as to turn eco-environment into resources, make the industrial economy environment-friendly, improve the sustainable development capability of the environment protection industry, and boost higher-level eco-environment protection and high-quality regional economic growth. The three parties jointly released two lists of pilot projects in April 2021 and April 2022 respectively. Following the principles of independent credit review, targeted measures, market-based operation, and controllable risks, CDB balanced economic and environmental benefits, and provided preferential support in resource allocation for the pilot projects that met the requirements. In the meantime, considering such factors as the industry involved, credit rating of the market player, sources of repayment, and credit structure, CDB provided differentiated credit policy support by prioritizing due diligence, investigation and approval, and loan granting for the pilot projects.
Rizhao Reservoir in Shandong Province, with a total volume of 318 million cubic meters, is the main drinking water source for the urban area of Rizhao City. It is also the main water source for the mainstay industries of the city. Viewing from Rizhao Reservoir Basin, we can see luxuriantly green trees and the quiet water surface neat as a mirror, surrounded by blooming fruit trees with luxuriant leaves. In April 2021, the ecological protection and industrial development of Rizhao Reservoir Basin was listed in the first batch of EOD pilot projects. The project aimed to comprehensively plan and integrate the resources of “mountain, water, forest, cropland, lake and grass” to improve the reservoir’s water conservation capacity by restoring the surrounding ecological wetland and improving the riverways of headwaters of the reservoir, so as to support the water supply for local residents and guarantee the safety of water source – the lifeline of the city. Meanwhile, it took a holistic approach to promote high-standard, large-scale organic crop plantation. Through industrial chain extension and local brand building, it intended to improve the added value of local agricultural products. In addition, it also introduced cash crops of high economic values such as hazels and apples fit for local soil and climate to drive the development of a sustainable industrial chain where the business benefits from the project help promote the ecological civilization. CDB Shandong Branch took the initiative to support the project in eco-environment protection and governance, ecological plantation, bioremediation of water ecology, and development of environmental experience area through financing, facilitating to balance ecological and economic values.
Yuexi County in Anqing City, the hinterland of Dabie Mountain, lies in southwest Anhui, traversed by Yangtze River and Huaihe River. In April 2022, an eco-environment-oriented development project in Yuexi Anqing was selected into the second batch of EOD pilot projects. Oriented at comprehensive water environment governance and supported by cultural-tourist related business collaboration, the project carried out the commercialized development based on eco-environment protection, highlighted the coordination and interplay between eco-friendly industries and industrialization of environmental protection activities, and kept improving the ecological spatial layout and the eco-environment quality, to support the development of green industry. CDB Anhui Branch made plans in advance and provided financial support for the comprehensive environment governance, development of ecological plantation and cultural tourism, biodiversity protection, and the development of health and wellness industry, boosting the eco-environment protection and restoration of Dabie Mountain, Yangtze River Basin, and Huaihe River Basin while exploring new ways of promoting rural revitalization and increasing farmer’s income.
An official of the Economic Activity Department III of CDB indicated that next, the bank would conscientiously implement the decisions and instructions of the CPC Central Committee and the State Council, and under the guidance of relevant ministries and commissions, it would actively provide financing support and suggestions on policy mechanisms as a development finance institution, facilitate to create more value of ecological products, and explore more experience that can be duplicated and promoted, thus making new contributions to the further protection against pollution and the building of Beautiful China in the 14th Five-Year Plan period.
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