Belt and Road loans go green

摘要

China's stalled Belt and Road Initiative is shifting towards low-carbon projects, as banks and sponsors look to align themselves with Beijing's new policy objectives. The increased focus on environmentally sustainable projects comes as China is looking to rebuild support for the trillion-dollar infrastructure drive after a rise in geopolitical tensions that has seen several deals shelved or cancelled. At the Boao Forum for Asia last month, Chinese President Xi Jinping called for stronger cooperation on green infrastructure, green energy and green finance "to make green a defining feature of Belt and Road cooperation". "When it comes to BRI lending, Chinese policy banks or the big four banks make decisions that are rather policy-driven," said a banker at a major Chinese bank. "There has been a growing tendency to lend to green projects and increasing concerns among these banks in projects that have a negative impact on the environment because of the government's climate rhetoric."