ADB to Help Ningbo City Develop into a Low-Carbon Economy    

MANILA, PHILIPPINES (28 June 2024) — The Asian Development Bank (ADB) has approved a $200 million loan to promote inclusive, low-carbon, and environmentally sustainable development in Ningbo City, Zhejiang province in the People's Republic of China (PRC).

Ningbo is one of the economic centers of the Yangtze River Delta and one of the important energy production and new materials industry bases in the PRC. It is heavily dependent on fossil fuels.

“The Ningbo Urban Green and Low-Carbon Development Project aims to provide a model for cities that have similar challenges of decoupling economic development from carbon emissions as Ningbo does,” said ADB Country Director for the PRC Safdar Parvez. “The project is expected to benefit 9.6 million residents in Ningbo by improving local air quality and public health.”

The project, the first ADB-financed project in Ningbo City, will focus on building the institutional and financial capacities of the Ningbo municipal government, local commercial banks, and micro and small enterprises in climate mitigation and green financing.

The project will also demonstrate innovative approaches to reduce greenhouse gas emissions and improve air quality. One is a green insurance and guarantee system pilot that lowers access barriers to green financing and incentivizes energy-saving projects. Another is a climate financing platform to support new low-carbon technologies, micro and small enterprises, and energy service companies, with a special focus on enterprises owned or led by women. The carbon rating system will facilitate carbon emissions trading in the future and enable financial institutions to prioritize environmentally responsible businesses and provide more financing to private enterprises with lower carbon footprints.

It is expected to reduce annual greenhouse gas emissions by an equivalent of 750,000 tons of carbon dioxide, contributing to the carbon peaking and carbon neutrality goals of the Government of the PRC. The total project cost is $517.8 million, with counterpart financing from the government, beneficiaries, and other sources. It is expected to be completed in 2029.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and  the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.