Green Finance Demonstration Project

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The project will use an IBRD loan to capitalize a national-level Green and Low-Carbon Investment Fund for China, with the objective of mobilizing additional long-term capital to invest in eligible green enterprises and projects. The Fund will provide equity financing and will target ventures with the potential for significantly positive environmental and climate outcomes. The investments will focus on growth-stage green companies, with a minimum of 70% of its investments dedicated to privately-owned enterprises (POEs) and a minimum of 60% of investments will go into SMEs which face the most serious challenges in accessing equity financing. By implementing best practices in identifying, screening, selecting and appraising green subprojects, as well as in implementation monitoring and reporting/impact evaluation, the project will address a key information gap in the green finance market, giving private investors more confidence to invest in green enterprises and projects.