(CFP Photo)

Jiangsu Hongze Lake Construction Investment Group Co Ltd successfully issued green bonds worth 700 million yuan recently, with a 7-year term specifically for the lake’s ecological restoration and mudflat farm project, which involves a total investment of 1.936 billion yuan.

As part of the efforts to promote the integrated development of rural industries, the program marked the first public offering of special bonds in the Hongze District of Huai’an City in five years.

The city milestone followed the cooperation among the province’s Department of Finance, Department of Ecology and Environment, and Jiangsu Credits Re-guarantee Group to enhance financing services for companies in environmental protection industry.

For projects related to pollution prevention, ecological restoration, infrastructure construction, and carbon emission reduction, Jiangsu encourages financing guarantee institutions to increase support for financing project of more than 30 million yuan. This includes offering a lower guarantee fee rate and interest rate to alleviate the difficulties faced by enterprises.

The coastal province was one of the first in China to develop green financing. In 2001, China’s first carbon emissions trading and first cross-regional sulfur dioxide emissions trading both took place in Jiangsu. In 2012, the province led the nation in launching the environmental credit evaluation system for enterprises. In 2017, it established a development fund for ecological and environmental protection. With the support of the Department of Ecology and Environment, the Department of Finance, and the Bank of Jiangsu, enterprises can use their emission rights as collateral to apply for loans beginning 2020.

In January 2022, the general office of the provincial government issued the 14th Five-Year Plan specifically for ecological and environmental infrastructure construction, the first of its kind in the country.