Creating an oasis in a desert, beautifying urban and rural environments, and protecting the ecology of waterways, the China Development Bank has been quietly greening China's industry and wider society by supporting decarbonization efforts.
Directly overseen by China's State Council, the bank is dedicated to supporting the development of key industries and underdeveloped sectors, as well as the country's goal to peak carbon emissions before 2030, and achieve carbon neutrality before 2060.
Embracing the national development philosophy of "lucid waters and lush mountains are invaluable assets", the CDB offers stable, medium- and long-term financial support for green development, with a focus on green infrastructure, clean energy, ecological protection, and pollution prevention and control.
These endeavors align with the "Beautiful China" initiative, which prioritizes ecological and environmental protection in the country's social and economic development pursuits.
New path
At the new energy logistics base of Caofeidian Port IoT Technology in Tangshan, Hebei province, North China, new energy heavy-duty trucks are lining up for battery charging and swapping. The Hebei branch of the CDB has financed Tangshan's heavy-duty truck battery-swapping project, issuing an inaugural loan of 88.05 million yuan ($12.27 million).
The project will establish 90 battery-swapping stations and supporting facilities in Tangshan, meeting the needs of 20,000 electric vehicles, which will aid in pollution control and carbon emission reduction.
A heavy-duty truck driver surnamed Liu, who has been in the trade for 15 years, transitioned from operating an internal combustion engine truck to driving a battery-swappable truck in 2022. His personal experience demonstrates the benefits of the change.
"The fuel cost per kilometer was around 2.8 yuan. Now, driving an electric heavy-duty truck, the electricity cost per km is approximately 1.8 yuan, and the time that battery-swapping takes is similar to that of refueling. This way, I now earn tens of thousands of yuan more annually than before," said Liu.
Despite the prospects, large-scale adoption faces certain challenges. Nationwide, the heavy-duty truck battery-swapping model is still in the exploratory phase. It faces problems like battery asset management complexities, high battery procurement costs, and non-interoperable swapping stations and batteries.
To build a sustainable operational model, the Hebei branch of the CDB has conducted extensive research on multiple battery-swapping stations and assisted clients in establishing a "battery bank" operational model, according to Shi Guangyuan, an employee of the Hebei branch.
A "battery bank" involves the operator of swapping stations setting up a subsidiary to manage battery assets. The subsidiary will be responsible for leasing batteries to downstream users, ensuring the compatibility of batteries and reducing project financing costs by converting battery purchases into rentals.
An executive of Tangshan New Energy Group said: "The CDB's tailored financial services for us have provided practical solutions for project financing and market promotion. This has significantly alleviated the funding pressure during the initial phase of the project."
Harnessing energy
In the Gonghe Photovoltaic Industry Park in Talatan, Gonghe county, Hainan Tibetan autonomous prefecture, Northwest China's Qinghai province, a herder drives his sheep through rows of neatly arranged photovoltaic panels. The soft, moist grassland is a stark contrast to the barren landscape it was a decade ago.
Talatan, meaning Tala sand land, at nearly 3,000 meters above sea level, used to have a desertification rate of up to 98.5 percent. The photovoltaic panels reduce wind erosion on vegetation and the temperature of the land beneath them. Photovoltaic power generation also produces condensation, while the water from the regular cleaning of the panels infiltrates the desert below, irrigating the plants.
However, the grass grew haphazardly, blocking the photovoltaic panels and reducing their effectiveness. In response, the park invited nearby herders to raise their sheep there. As a result, grass now carpets the area, with sheep grazing under the panels.
Financed by the CDB's Qinghai branch, the Longyangxia Hydro-Solar Hybrid Power Station in the Gonghe Photovoltaic Industry Park stands as a testament to sustainable energy practices, cutting the use of standard coal by around 460,000 metric tons annually.
Li Honglei, a client manager, said: "During the project's initial phase, the Qinghai branch conducted thorough investigations and had discussions with the client to explore business models and green channels, providing a total of 4.2 billion yuan in loans to ensure the project proceeded smoothly."
This "solar-powered sheep" model, which enhances both ecological preservation and economic development, is being replicated across the country.
On Southwest China's Western Sichuan Plateau, the Sichuan branch of the CDB financed the first phase of the Hongyuan Anqu Photovoltaic Power Project, which reduces carbon emissions by 400,000 tons annually. The project also boosts the incomes of local herders by enabling them to graze yaks beneath the panels.
Combating pollution
The Fenghe River is a main tributary of the Weihe River, which in turn is the largest tributary of the Yellow River. There was a time when the direct discharge of sewage along the Fenghe River compromised its ecological health. Another branch of the CDB, located in Northwest China's Shaanxi province, has issued loans totaling 270 million yuan to bolster local infrastructure, including the construction of six sewage treatment stations and approximately 246 km of sewage collection pipelines.
The project, now over halfway complete, is designed to treat 2,500 cubic meters of domestic sewage daily, curbing pollution at its source while enhancing the efficiency of sewage collection and treatment.
"We focus on resolving prominent water environment challenges in rural areas and enhancing sewage treatment capabilities of villages along the Fenghe River to lay a robust ecological foundation for high-quality economic development," said Yuan Lin, an executive from Xi'an High-Tech Zone Municipal Infrastructure Construction.
"The Shaanxi branch of the CDB has provided the project with efficient, long-term financial support, ensuring its steady progression and aiding the restoration of the Fenghe River's natural beauty," Yuan noted.
Dongtou district, located at the mouth of the Oujiang River on the southeast coast of East China's Zhejiang province, is known as the "maritime gateway" to southern Zhejiang. In recent years, the district has been carrying out an eco-environment-oriented development project. The project strengthens the foundation for industrial development through ecological management and restoration, and reinvests profits from local industries into ecological governance to promote common prosperity.
The Zhejiang branch of the CDB has been efficiently processing credit approvals, contract signings and loan issuances. Currently, projects such as the ecological restoration of mines are progressing as planned. The coastal marine environment in Dongtou district also continues to improve.
Furthermore, through the construction of marine farms and other infrastructure, traditional aquaculture practices have been upgraded, fostering the development of mechanized seaweed cultivation and tech-aided breeding of large yellow croakers, increasing the incomes of local residents.
From the foothills of the Tianshan Mountains to the Jialing River's banks, and from the Loess Plateau to the southeastern coast, green finance has breathed new life into sustainable development in China.
Moving forward, the CDB will continue to fulfill its mission by enhancing financial support for key areas of green, low-carbon and circular development, further enriching its green finance products and services. These efforts aim to provide robust financial backing for the comprehensive green transformation of economic and social development and the "Beautiful China" initiative.
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