China green building projects to get $117M financing

The Asian Development Bank (ADB) plans to provide RMB 800 million ($117 million USD) in financing to support energy-efficient projects led by China’s private sector.

“Given [China’s] rapid urbanization, energy efficiency in buildings will have long lasting and large cumulative impact,” Robert Wihtol, ADB’s country director, said in a release.

The Energy Efficient Multi-Project Financing Program is a pilot program designed to help energy end users in China gain access to domestic financing for projects that will boost energy efficiency. It is part of ADB’s Energy Efficiency Initiative, in which the financial institution plans to fund at least $1 billion worth of energy-efficiency and clean-energy projects annually.

In the pilot program, the ADB plans to partner with Johnson Controls (NYSE: JCI), a private energy management company with worldwide energy-efficiency technical expertise. Together they plan to identify either existing buildings that can be retrofitted to save as much as 40 percent in energy costs, or support the construction of new buildings. Partnerships with other management companies are expected to be established at a later date.

The ADB plans to team with financial institutions such as the Standard Chartered Bank to share the project credit risks in the pilot program, which is expected to provide partial credit guarantees.

“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,” said Elvis Chan, vice president and managing director of Johnson Controls Building Efficiency China.

”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."