Shandong Green Development Fund

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Shandong Province has particularly serious environmental problems as a result of the dynamic economic growth of the last three decades. Compared to other Chinese provinces, Shandong has the highest emissions of sulphur dioxide (SO2) and nitrogen dioxide (NO2). Two of the five Chinese cities with the highest levels of particulate matter pollution are in Shandong Province (as of 2015). Together with the Asian Development Bank (ADB) and the French AFD, funds are being made available to finance green infrastructure projects through a fund in Shandong. These include investments in areas such as renewable energies, urban transport infrastructure (public transport), water supply and sewage disposal, waste disposal and district heating. The overarching goal is to establish the Shandong Green Development Funds as a permanent green regional financing vehicle that contributes to sustainable and inclusive growth in China through the use of different forms of financing. The fund is to finance infrastructure projects with a total volume of EUR 1.3 billion (RMB 10 billion). In addition to the contributions from ADB, AFD and KfW, the fund is also intended to attract private, institutional and commercial investors. This leverage of private capital is intended to increase the positive environmental impact. The project aims both at a globally relevant environmental impact (particularly in terms of reduced greenhouse gas emissions) and at improving the environment and quality of life of the population in Shandong. The FC development loan supports the People's Republic of China in achieving the Sustainable Development Goals (Sustainable Development Goals) No. 13 Climate Protection Measures, No. 9 Industry, Innovation and Infrastructure and partly No. 11 Sustainable Cities and Communities.