China’s $13.6 Billion Green Development Fund Closer to Takeoff
What’s new: China’s first national fund dedicated to investing in green projects is moving toward formal launch as regulators start clearing investments from major participants.
A total of 26 investors, including government departments, financial institutions and companies, pledged to invest 88.5 billion yuan ($13.6 billion) in the first phase of the National Green Development Fund.
The Industrial and Commercial Bank of China (ICBC), the country’s largest lender, said Monday that it won approval from the China Banking and Insurance Regulatory Commission to invest 8 billion yuan in the fund. The money will be transferred in batches, the bank said.
The background: Established in July, the National Green Development Fund was initiated by the Ministry of Finance, Ministry of Ecology and Environment and Shanghai city government.
Last week, Bank of China (BOC) won similar approval to contribute 8 billion yuan within five years. ICBC and BOC are among nine financial institutions that pledged to invest in the fund, along with several state and private companies.
The fund was created to support the “green transformation” of the Chinese economy and strengthen the role of the market in fighting pollution. It will mainly invest in national strategic programs such as the green development of the Yangtze River region.
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