CRI听力:EIB to discuss new cooperation on green finance with China

The European Investment Bank has confirmed that it is in discussion with the People's Bank of China, to mobilize greater support for green finance.

The move was announcement a day ahead of a jointly-hosted high-level workshop between the two sides being held Wednesday, attended also by leading Chinese investors, representatives of financial institutions, and regulators.

CRI's Guan Chao caught up with Jonathan Taylor, Vice President of the EIB and heard what he had to say.

Established in 1958, the European Investment Bank is the world's largest lender for climate-related investment.

Speaking at a news conference, the bank's Vice President Jonathan Taylor announced that Europe's long-term lending institution agreed to provide 298-million euros worth of support to eight Chinese provinces in 2016.

"Last year, we agreed to support new projects, from Heilongjiang to Hainan, build on a track record of more than 20 years, though banking investment in this country. And this included forestry projects in six locations. Energy efficiency schemes in Shandong. And biomass investment in Henan."

According to Taylor, China has become the key destination for EIB investment.

Speaking in an interview with CRI, he said the EIB's focus on China is supported by the shared goal of the two sides.

"The way I put it is more that the focus we are going to now is very much climate-related investment. On this scenario, of course, China itself is very keen to take forward projects and take forward investment. So this is something where our shared purposes are dovetailing very clearly. I think that's the explanation why we are doing more business here."

Taylor is on a five-day visit to China, during which the EIB delegation will discuss on-going and new initiatives to strengthen support for climate-related investment with China's ministers and senior officials.

He revealed that the target of the discussions was to enhance the confidence of Chinese and international investors in green finance, through more consistent definitions and methodologies.

"I will be participating in this conference tomorrow with the People's Bank to look at green finance. Also I will be talking to colleagues in ministries and I will be talking to people from other NDBs, and I'll also in the next few days be travelling around China and talk to colleagues in the regions as well."

Figures show that 30-percent of EIB lending went beyond Europe last year, and that number is expected to grow by another 5-percent by the year 2020.

According to Taylor, they will also diversify their fund-raising channels outside Europe, including in Asia.

"Our funding is raised on the international capital market, and a good proportion of that, some 40-percent I believe is raised outside Europe. So we will continue to fund from a whole variety of sources, and that includes from Asian sources. So we will carry on doing that."

In May last year, the EIB and Asian Infrastructure Investment Bank reached an agreement on co-investing in major strategic projects and expand cooperation on joint-financing programs.

Taylor said the two public banks are working on individual projects, which are based on their common grounds.

"Clearly, these would be projects which met our shared policy goals. There's a strong congruence between our policy goals of course, 'cause the AIIB is pretty much a lean, clean, and green organization, (which) is the phrase which the president uses. And that goes very much with the green, the way we would like to operate, too."

The European Investment Bank has financed projects in China since 1995.

Last year, the EIB Group provided 84-billion euro to finance new investment around the world, including 19.6 billion for climate-related investment.

For CRI, this is Guan Chao.