China’s first blue carbon loan worth 10m yuan issued in Yancheng

2022-09-05 17:30:00

A company in Yancheng City received the secured loan of 10 million yuan by using the carbon sink of to-be-renovated wetland as collateral on August 30, the first such blue carbon loan in China.

Blue carbon is the carbon stored in coastal and marine ecosystems so the conservation and restoration of wetlands, important bird habitats, not only protects such species but also contributes to efforts of mitigating climate change.

The blue carbon loan integrates green financing, wetland restoration and carbon sink protection. In this program, the Dafeng branch of Industrial Bank considered the prices for carbon quotas at the national carbon emissions trading market as well as the future income from the restored wetland as a carbon sink before granting the loans, with the pledge also registered with a system for movable property and rights by the People's Bank of China.

The borrower, Dafeng District Huafeng Agricultural Development Co Ltd, will use the loans to carry out nature-based wetland restoration and conservation. According to a plan, the restoration area will focus on the protection of ecosystems and biodiversity, the construction of bird-friendly wetlands, and building of management facilities. Efforts will be made to make the eco-friendly agriculture and protect habitats for migratory birds.

Yancheng has 531,200 hectares of wetlands, about 53.62% of the total in Jiangsu. The coastal wetlands in Yancheng rank top on the list of the important migratory bird habitats in the world.