In response to China's goals of reaching peaking carbon dioxide emissions by 2030 and achieving carbon neutrality by 2060, Taixing city in Jiangsu province is encouraging financial institutions to offer green financial services for local businesses.
As a prime example, the city successfully convinced Taixing Rural Commercial Bank to issue the "carbon reduction plus energy efficiency improvement rate" double linked loan of 5 million yuan ($695,570) to Jiangsu Zhongdi Energy Saving Technology, lowering loan interest rates by 28 basis points.
The company, based in the Taixing Huangqiao Economic Development Zone, was able to transform its green efforts into financing cost advantages, realizing both social and economic benefits.
Jiangsu Zhongdi Energy Saving Technology, located in the Taixing Huangqiao Economic Development Zone, Taixing, Jiangsu province. [Photo/WeChat account: txfabu]
Efforts have been made by Taixing to integrate core energy consumption data of resident large-scale enterprises in coal, electricity, water, gas, introduce third-party institutions to carry out carbon emission accounting and rating, and provide data support for quantifiable evaluation and real-time monitoring of enterprise energy consumption and carbon emissions.
The city has also established an account sharing mechanism to help banking institutions access real-time dynamic indicators such as corporate carbon emissions, energy consumption, and carbon efficiency levels.
Looking ahead, the city will continue to encourage financial institutions to enhance product and service innovation and strive to create a Taixing model in green and low-carbon development.