The Ministry of Finance's Clean Development Fund or CDM, Jiangsu Provincial Department of Finance and Bank of Jiangsu signed a contract Thursday in Nanjing to jointly initiate a "Green Innovation Investment" project for the support of the development of the green industry in Jiangsu through an innovative financial business model.
The green innovation investment project is expected to have a total scale of 10 billion RMB. The CDM funds will be used to provide preferential funds. The Provincial Department of Finance will give a moderate interest discount. The Bank of Jiangsu will conduct market operations and bear project risks, ensuring that energy-saving and emission reduction projects can enjoy far lower rates than market interest rates.
The project will mainly support Jiangsu-based enterprises to carry out development and utilization of renewable and new energies, industrial production of energy-saving and emission-reducing products, central heating, cogeneration and residual heat and pressure utilization projects.
The green innovation investment project invests on creditor's rights. In principle, the investment period of a single project does not exceed 3 years. For a project with significant public welfare and long investment return period, it may be extended to 5 years. At present, the system of green financial products in Jiangsu Province has been continuously improved, and the balance of green financial credit has reached 600 billion yuan.
(Source: Jiangsu International Channel)
