Partnership to promote energy-efficient buildings in China
The Asian Development Bank (ADB) is extending 800 million yuan (about US$116.9 million) in a partial credit guarantee program that will support private sector-led energy efficiency projects in the People’s Republic of China (PRC). Under the pilot program, ADB is partnering with a private energy management company and financial institutions to retrofit existing buildings to save energy, and to support the construction of new energy-efficient “green buildings”. The management company will identify buildings with energy savings potential, while ADB will share the project credit risks with the financial institutions.
Johnson Controls, which has worldwide technical expertise in the field of energy efficiency, including in the PRC, and is listed on the New York Stock Exchange, has been selected as the first partner energy management company.Standard Chartered Bank (China) Limited will be the first partner financial institution in this pilot program providing financing to Johnson Controls’ buyers in China.
The need to improve energy efficiency in PRC has been growing with the country now the world’s second -largest energy consumer and one of the leading contributors to greenhouse gas emissions. At the same time, commercial banks in the PRC need further expertise to make technical evaluations of energy efficiency projects, to ensure the availability of project financing. The Energy Efficiency Multi-Project Financing Program will improve access to domestic finance for a large number of energy end users seeking to make efficiency improvements, with the retrofitting of existing buildings typically leading to energy savings of 20%-40%.
“Under this Program, ADB is partnering with a private sector energy management company and financial institutions to make PRC buildings energy efficient. Given the PRC’s rapid urbanization, energy efficiency in buildin gs will have long lasting and large cumulative impact.” said Robert Wihtol, the Country Director of ADB. “ADB has worked to develop and structure the program effectively as a private-sector transaction in order to make it sustainable. We are very pleased to have credible partners such as Johnson Controls and Standard Chartered China for the program,” said Hisaka Kimura, Investment Specialist of ADB’s Private Sector Infrastructure Finance Division II.
“Johnson Controls is committed to creating a more comfortable, safe and sustainable world. With China's increasing focus on energy efficiency and environmental protection, we are contributing to this effort by providing energy efficient systems and green solutions to our customers. The cooperation with ADB and Standard Chartered China on the new Energy Efficiency Project Financing Program will be a key driver to further the success on providing a complete solution for green business development and striving for a sustainable growth in China.' said Elvis Chan, Vice President and Managing Director, Johnson Controls Building Efficiency China.
David Godwin, Managing Director and Head of Wholesale Banking Origination & Client Coverage, Co-Head of Wholesale Banking, Standard Chartered Bank (China) Limited, said, “Standard Chartered commits to build international standards into our financing practice that help protect the environment and contribute to social development. We are delighted to work with ADB and Jo hnson Controls on this program. Standard Chartered China has a 150 year of
continuous operation in China. We commit to build a sustainable business here to deliver value to customers whilst helping to address the significant environmental issues the world is facing.” The program is part of ADB’s Energy Efficiency Initiative which aims to provide at least $1 billion a year for funding energy efficiency and clean energy projects.
Customer comments
No comments were found for Partnership to promote energy-efficient buildings in China. Be the first to comment!