The cities of Taiyuan and Changzhi, located in North China's Shanxi province, recently received their national climate investment and financing pilot qualifications.
Climate investment and financing refer to investment and financing funds to enter the field of climate change there, with the aim of achieving nationally determined contributions and low-carbon development goals.
In December 2021, nine national government departments, including the Ministry of Ecology and Environment, began to map out the first pilot cities of climate investment and financing.
According to Shanxi Department of Ecology and Environment, the approval of the pilot cities in Shanxi will expand paths for promoting green and low-carbon development in the province and even throughout the whole country.
As one of the first pilot cities, Taiyuan has screened out 125 climate investment and financing projects involving a total investment of 398 billion yuan ($58.86 billion). These include six major projects for the adjustment of industrial structures and decarbonization, the optimization of energy structures, pollution reductions, resource recycling, infrastructure constructions, and ecosystem restoration and protection.
Changzhi has to date incubated 155 climate investment and financing projects, which are expected to drive 48.9 billion yuan in climate investment and financing during the 14th Five-Year Plan period (2021-25).
Through developing climate investment and financing tools and products, improving climate investment and financing infrastructure and promoting green and low-carbon pilot projects, the two cities are projected to flourish. These initiatives are expected to provide residents with a greener life, enterprises with better comprehensive energy service platforms and local governments with more efficient management.