BEIJING: China intends to focus on the five major areas of financial technology, green finance, inclusive finance, pension finance and digital finance.

As part of those efforts, the 2024 Shandong “Haopin Financial” list was officially released, and the “Low Carbon Benefit Loan” product submitted by Qilu Bank was selected for the list of excellent green financial products.

The list recommended innovative financial products introduced by various financial institutions.

Currently, the Chinese economy is at a crucial period of transitioning from high-speed growth to high-quality development.

In this context, green finance, as a key tool and means to promote sustainable economic and social development, is of significant importance.

As the first urban commercial bank in Shandong province, Qilu Bank has achieved strong results in the innovation and development of green financial products. In June 2023, to fully utilise and benefit from Shandong province’s carbon reduction policy tools and increase preferential loans in the green and low-carbon fields, Qilu Bank introduced the Low Carbon Benefit Loan product.

Guided by the national policy of resource conservation and environmental protection, Qilu Bank has been following the development concept that “lucid waters and lush mountains are invaluable assets”, and targeting key areas such as green energy, green low-carbon transformation, green ecological agriculture and ecological governance.

The bank has been supporting emerging industries and boosting the formation of new quality productive forces.

Solar power has significant environmental, energy-saving and economic benefits and is a key lever to help create new quality productive forces. However, many companies involved in the solar-industry chain are in the early stages of development, facing challenges such as long investment cycles, lack of collateral and insufficient initial capital.

An example of the bank’s involvement is a company located in Shandong’s Dongying. The company established in 2022, engaged in the construction and operation of a 3.2-megawatt rooftop distributed solar power project.

Utilising a factory roof of 23,400 square metres as the site, its expected annual electricity generation can reach 3.58 million kilowatt-hours. Upon learning that the client urgently needed financial support for the new project, Qilu Bank immediately sent out staff members for on-site coordination.

Leveraging the advantages of the green financial working group mechanism and approval channel, the bank quickly approved a 10-year loan of 9.4 million yuan for the company with preferential rates by utilising a carbon reduction refinancing rate compensation mechanism. The bank’s effort reduced the company’s financing costs.

Since 2023, Qilu Bank has disbursed more than 75 million yuan to distribute solar project loans in the Dongying Economic and Technological Development Zone, reducing carbon dioxide emissions by approximately 10,616 tonnes annually. The effort achieved ecological, social and economic benefits.

Qilu Bank said it will continue to explore and innovate to meet the green transformation financing needs of various entities.

Currently, the bank’s Low Carbon Benefit Loan programme has exceeded 10 billion yuan, covering areas such as solar power equipment manufacturing, road construction greening, maintenance management, rural drinking water safety projects and more.

 - China Daily