Supporting the creation of China’s first provincial climate fund, in Shandong Province

ongoing

Jointly financed by the Asian Development Bank, the KFW and the Green Climate Fund, the Shandong Green Development Fund is a pilot investment fund in China dedicated to the development of “green” infrastructures. With a target total of CNY 10 billion (approximately USD 1.5 billion), the fund will be earmarked for financially sustainable projects aimed at CO2 mitigation and climate change adaptation, in particular in the highest-emitting industries.The structure of the fund is innovative in several ways:long-term funding from donors and local government will make the risk-return profile of investments attractive, ensuring that they appeal to private, institutional and commercial investors,once the loans for the first projects have been repaid, the funding from donors can then be reinvested in other projects,the fund will apply a method used by the Green Climate Fund assessment process to evaluate projects’ performance in the fight against climate change and thus contribute to the dissemination of internationally recognized standards for assessing climate benefits.