AIIB’s First Loan

The Asian Infrastructure Investment Bank (AIIB) announced on December 11 that it has approved its first loan in China for a natural gas project.

The $250-million loan will fund a project to connect 216,750 households in approximately 510 villages to the natural gas distribution network, according to an AIIB statement.

Upon completion, and after allowing for the emissions produced from burning natural gas, the project is expected to reduce annual carbon dioxide emissions by 595,700 tons, particulate matter by 3,700 tons, sulfur dioxide by 1,488 tons and nitrogen oxide by 4,442 tons, according to the statement.

AIIB President Jin Liqun said China’s commitment to reducing its reliance on coal will change lives and improve the environment.

He also reaffirmed the AIIB’s “unwavering commitment” to helping its members meet their environmental and development goals, especially those commitments that fall under the terms of the Paris Agreement.

“It is only fitting that our first investment in China will introduce sustainable infrastructure to reduce greenhouse gas emissions and help invigorate one of the most important economic hubs within Asia,” Jin said.

Investment in the project also marks AIIB’s first corporate loan. The project, undertaken by the Beijing Gas Group Co., will entail construction of natural gas distribution networks in the villages and low-pressure gas pipelines as well as household connections. It is scheduled for completion in 2021.