China gets USD202m EIB funding for carbon reduction

Wed Dec 2 2009, 12:43 PM UTC

China is receiving EUR134m (USD202m) in loans from the European Investment Bank (EIB) to support four projects to reduce the country’s carbon dioxide emissions. The funding is being made through the China Climate Change Framework Loan (CCCFL), which was established in 2007. When complete, the projects will result in the reduction of up to 830,000 tons per year of emissions. Each project will claim carbon credits through the Kyoto protocol’s clean development mechanism.

The EIB is providing EUR31m (USD46.8m) to aid the modification of the district heat system in Jinan, Shandong province. The project will reduce heat losses by 46%, water usage by 16% and electricity consumption by 48%. The new system will use hot water supply rather than steam supply.

Chaoyang City, in Lianoing province, will spend EUR29m (USD43.7m) to replace street, building and landscape lighting with energy efficient lights powered by solar energy. Electricity generated by the photovoltaic panels will be stored in batteries for out-of-daylight hours.

China will develop 10 small-scale hydroelectric plants in Hubei province’s Yichang City, with the EIB providing EUR40m (USD60.4m) to support the projects. The plants will have a combined capacity of 62MW.

A further EUR30m (USD42.3m) will be allocated for the construction of a sodium carbonate and ammonium chloride co-product plant. The facility will use carbon dioxide produced at an existing fertiliser factory, as well as waste heat and solid residues.

Since its foundation, the CCCFL has secured EUR334m (USD504m), from a possible EUR500m (USD754.6m), to support 20 projects.

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