World Bank Group and IFC Leaders Promote Climate Change Mitigation in China
World Bank President Jim Yong Kim and IFC Executive Vice President and CEO Jin-Yong Cai visited China in September to increase collaboration to combat the country’s climate change problems. In Shanghai, Kim and Cai saw for themselves how the Bank Group and China are working together to help the city go green, examining an online platform for monitoring energy consumption in buildings and construction plans for a near zero-emissions building. The Bank Group is covering part of the incremental costs for this building, and is also helping Shanghai’s Changning district government achieve its carbon intensity reduction target and promote investments in low carbon buildings. Kim also talked to the Bank Group’s banking clients about how financial institutions can support small and medium enterprises and energy efficiency in the city.
Also in September, IFC and Fujian-based Industrial Bank agreed to jointly promote energy efficiency in buildings across China, which is home to half of the new buildings built globally every year. China uses around 40 percent of its total energy on the building sector, according to a McKinsey report. This partnership builds on IFC’s success working with banks, government, and other market players to help China’s small and medium enterprises access finance for sustainable energy initiatives.
IFC is partnering with China’s Ministry of Housing and Urban-Rural Development on the China Green Buildings program. The program aims to significantly reduce greenhouse-gas emissions and make substantial cost savings. It will help address market failures and major barriers, such as the lack of adoption of previous building energy efficiency code measures, confusing regulations, and enforcement issues related to developing and implementing similar projects in the past. IFC will work with various levels of government, financial institutions, developers, industry associations, energy service companies, and development agencies to help remove these barriers. The program will also encourage improvements to China’s 3-star evaluation system to increase the number of buildings that conform to China’s Green Building standards.