Evolution of AFD’s total commitments
and disbursements in China
{in EUR million}
1200
1,029.1
1000
898.5
777.5
800
674.5
2
696.2
554.5
600
520.3
400
392.2
324.5
240.5
249.5
180.5
200
68.5
35
0
0
2003
8.9
0
2004
2005
2006
95.4
50.4
31.1
2007
2008
total commitments
2009
XXX
2010
2011
2012
total disbursements
Situation as of 31.12.2012
Allocation of AFD’s
commitments by sector
373.5 M€ / 34.5%
energy efficiency
368 M€ / 34%
sustainable urban Development
115.6 M€ / 11%
rural Development and biodiversity
123 M€ / 11%
clean energies
49 M€ / 4.5%
regional integration in the Greater Mekong subregion (GMS)
A
gence Française de Développement (French
Development Agency -AFD) has been
operating in China since 2004 under a partnership
with the Chinese Ministry of Finance (MOF) and the
National Development and Reform Commission
(NDRC). Its activities aim to develop cooperation in
the fight against climate change and the promotion
of sustainable development, which are priority
sectors in the Sino-French strategic dialogue.
Considering the major environmental challenges in China, AFD's
objective is to promote the country's
transition towards a low-carbon,
environmentally friendly economy.
It meets this objective by implementing exemplary and replicable
projects to:
Mitigate the environmental
footprint of cities by developing
adapted urban infrastructure and
services.
Promote low-carbon development by improving energy efficiency and developing clean
energy.
In addition, AFD-financed projects offer an opportunity to
develop Sino-French partnerships by mobilizing French
expertise and know-how in order to support China's
transition towards a low-carbon and environmentally
friendly economy.
Conserve natural resources and
biodiversity and assist Chinese
local authorities in integrating
ecological considerations into
their territorial planning programs.
3
Mitigating
the Environmental
Footprint of Cities
AFD’S sustainable urban development projeCts in China
District Heating
Mongolie
Intérieure
Pékin
Shanxi
Hebei
Taiyuan
Ningxia
Jinzhong
4
Building retrofitting
Tianjin
Integrated Multimodal
SOUTH
Transport Hub
KOREA
Jinan
Shandong
Gansu
Shaanxi
Jiangsu
Henan
Anhui
Shanghai
Hubei
Zhejiang
Chongqing
Hunan
Jiangxi
Fujian
China has 690 million city dwellers in 2013,
i.e. an urbanization rate of over 50%. If
the pace of urban expansion experienced
over the past thirty years continues, there
will be a billion urban dwellers by 2030.
This extremely rapid and massive urban
transition goes hand in hand with enormous
environmental challenges.
AFD’s activities aim at supporting
sustainable urban development in
China, particularly in the following
three areas:
Urban planning will determine the living
habits for decades to come, especially for
transportation, which will be structured
according to the pattern and shape of the
city.
– T he development of public transport
infrastructures towards sustainable
transport;
– T he improvement of energy efficiency
in buildings and urban services;
– E ffective water and sanitation services.
Supporting innovation
in district heating
Heating networks in China are three times less energy efficient than those
in industrialized countries. Heating counts for 12% of primary energy
consumption, which is mainly coal-based, and poses significant challenges
with regards to emissions of greenhouse gases and hazardous pollutants
(e.g. sulfur and soot).
In the 2000s, the Chinese authorities undertook measures to modernize the
sector, which include the establishment of centralized networks connected
to large-scale and more efficient heating plants (boiler systems and
cogeneration plants), support for the normalization of heating industries
and energy-saving tariff methods.
ACHIEVEMENTs
impacts
AFD has granted loans to support the rehabilitation
of district heating network in three cities: Jinzhong
and Taiyuan (Shanxi Province) and Jinan (Shandong
Province). These operations have identified
substantial energy-saving potential in this sector,
contributed to the adoption of innovative, high
performance technical solutions and brought about
remarkable improvements in project design.
✓ Annual emission reduction of approximately
800,000 tons of CO2 .
✓ Reduction of local pollutant emissions (over
3,000 tons of SO2 and over 6,000 tons of soot
a year).
✓ Positive effects on public health and the quality
of life for local communities.
Examples of
innovative
technologies:
– Installation of « skids » (box-type heat exchange station)
– Establishment of automatic control and energy management centers
– Utilization of high-efficiency pumps
5
Promoting low-carbon
sustainable cities in China
The case of Wuhan
6
Wuhan, capital of Hubei province, was designated
as a pilot city for the implementation of a
cooperation agreement to promote sustainable
urban development signed between the French
Ministry of Ecology and the Chinese Ministry of
Housing and Urban-rural Development. AFD is
implementing two demonstration projects in this
city.
Energy rehabilitation of public buildings
The project followed an AFD-funded study on the
financial mechanisms for energy rehabilitation in
buildings in Wuhan, conducted in partnership with
the Commission of Construction of Hubei and
Huazhong University of Science and Technology.
Multimodal
Transport Hub
The project aims to promote intermodality
in Greater Wuhan by encouraging the use of
public transport. It involves the construction
of a multimodal transport hub that coordinates
different modes of transport (subway, train, urban
buses, taxis, private cars and flights) and optimizes
transfers.
This project to rehabilitate public and administrative
buildings owned by the municipality of Wuhan
aims to reduce greenhouse gas emissions through
a more effective control of energy consumption in
buildings. An energy performance contract (EPC)
mechanism is included in the project in order to
ensure that the initial energy-saving objectives are
achieved.
➢ The hub will spread over 5 functional levels covering a
total area of 278,000 m2. It will comprise transit areas,
stations, parking lots, commercial centers, etc.
➢ The project will provide airport passengers with an
integrated, varied and attractive choice of high-level
public transport services. These services will also
facilitate access to employment in the airport zone.
Promoting
new technologies
in water and
sanitation projects
With 21% of the world’s population but only 7% of water
resources, China faces strong growth in water demand
combined with severe pollution of its surface water and
groundwater. The country thus needs to address major
challenges in terms of access to good quality water and
wastewater sludge treatment.
France, with its specialized companies and
organizations in this sector, enjoys renowned expertise
and know-how, as well as numerous international
references.
AFD ’s
activities
in China
aim to:
– P romote advanced solutions in water treatment, wastewater treatment and sludge management;
– Recover greenhouse gas emissions from wastewater treatment and organic residues;
– Reduce energy consumption in drinking water and sanitation services;
– Preserve ecosystems and biodiversity by reducing pollutant discharges.
In the province of Sichuan, AFD has
provided a loan for the reconstruction
of drinking water and wastewater
treatment plants as part of the postearthquake reconstruction program.
7
Energy Saving
and Clean Energy Development
Hebei
Ningxia
Shandong
Qinghai
AFD’S clean Energy projects in ChinA
Gansu
Henan
Shaanxi
Small
Hydropower
Jiangsu
Yichang
Shanghai
Xiangyang
Sichuan
Biodigesters
Anhui
Hubei
Wuxi
Wind Power
Zhejiang
Chongqing
Hunan
Jiangxi
Fujian
Guizhou
8
Dali
Yunnan
Guangdong
Guangxi
Taiwan
Hong Kong
Macau
Hainan
China is the largest energy consumer with a very high energy intensity (gross domestic
product – GDP – per unit of energy use).
The country has set an objective of reducing its energy intensity by 40 to 45% by 2020
relative to 2005 levels. The control of energy production and utilization constitutes a
major challenge for the country's transition towards a low-carbon economy.
In China, AFD supports projects to improve energy efficiency in the industrial sector and
develop clean energy sources, such as biomass.
Green Credit Lines ( 55 projects in 20 Provinces )
AFD has granted loans totaling EUR 180 million through two Green Credit Lines,
in partnership with Shanghai Pudong Development Bank, Huaxia Bank and China
Merchants Bank. At the end of 2012, these two credit lines had financed 55 energy
efficiency and renewable energy projects in 20 Chinese provinces.
ACHIEVEMENTs
This program
has two
objectives:
1
2
Provide financial support to public or
private companies with strong energy-saving
potential.
Build the capacities of banks to develop green
finance in order to fight against climate change.
Conservation of Natural
Resources and Biodiversity
AFD’S ForEst and biodivERSITy projects in ChinA
forest projects
Jilin
Liaoning
biodiversity projectMongolie
Pékin
Intérieure
Tianjin
Shanxi
Hebei
Ningxia
Shandong
Qinghai
Gansu
Shaanxi
Jiangsu
Henan
Anhui
Shanghai
Hubei
Sichuan
Zhejiang
Chongqing
Jiangxi
Hunan
Fujian
Guizhou
Yunnan
Guangxi
Guangdong
More than a third of greenhouse
gas emissions released into
the atmosphere derive from
agricultural
and
forestry
activities. Yet when they are
sustainably managed, agriculture
and reforestation can play a
major role in biological carbon
sequestration.
AFD supports China’s public
policies
by
implementing
pilot projects in rural areas.
These projects have a strong
impact on reducing greenhouse
gas emissions and promote
sustainable development in rural
areas.
Taiwan
Hong Kong
Macau
Sustainable Forest Management in Hunan and Yunnan
ACHIEVEMENTs
The projects financed by AFD in the provinces of Hunan and Yunnan aim to
contribute to economic development in rural areas and to the fight against climate change by rehabilitating forests and planting new forest areas. They include
capacity building activities for local partners, as well as the application of forest
carbon credits on the financial market.
HUNAN
– Rehabilitation of 10,000 hectares of bamboo;
– Planting of 6,600 hectares of ligneous species
(fir trees and endemic deciduous species);
– Construction of roads in forest areas;
– Creation of a fire prevention network.
YUNNAN
–
Rehabilitation of degraded forests and new
plantations (walnuts, bamboo, pine trees, etc.)
covering a total area of 59,000 hectares in order to
improve forest productivity.
9
Preserving
Biodiversity
As one of the 17 countries in the world with the richest biodiversity, China is
confronted with a rapid deterioration of its ecosystems. The situation today is critical,
with China's rate of biodiversity loss higher than the world average. The main causes
are the transformation of natural spaces, pollution, the overexploitation of natural
resources and climate change. China has recently set out to address these issues by
implementing policies to preserve its biodiversity.
AFD is supporting these initiatives by implementing projects to preserve fragile ecosystems, which allow China to benefit from French experience and expertise in this
area.
10
Wetland Restoration in China
Wetlands constitute an area of
transition between water bodies and
landforms. They are an essential
natural heritage with remarkable
biological, hydrological, economic and
social functions and value. As one of
the most productive ecosystems on
ACHIEVEMENTs
the planet, wetlands play a vital role
in water circulation and constitute
a unique flyway for numerous
waterfowls in the world. About 10%
of the world’s wetlands are located in
China.
Restoration of the world's largest reed marshes
in Liaoning Province
The world’s largest reed marshes are located in the
Shuangtai estuary in Liaoning Province and cover
an area of almost 300,000 hectares. They feature
rich biodiversity and are the habitat of the largest
community of Saunders's Gulls. This site has been
labeled Ramsar (see box) since 2004. However,
due to human activities such as agriculture and
petroleum drilling, the reed marshes have recently
been confronted with large-scale degradation and
drought.
AFD has provided a loan to preserve and restore
the hydraulic functions of the Shuangtai estuary
by rehabilitating the hydraulic infrastructures
and remediating polluted oil extraction sites.
The project also involves diversifying wetland
economies through ecotourism.
The Ramsar Convention (The Convention on Wetlands
of International Importance,
especially as Waterfowl Habitat) is an international treaty ratified
in 1971 in Ramsar (Iran) for the
conservation and sustainable
exploitation of wetlands. China
is a contracting member of the
convention with 41 sites listed.
Developing
Sino-French Partnerships
AFD aims to promote the emergence of SinoFrench partnerships through its activities.
France possesses world-renowned expertise in
environmental equipment and services.
AFD-financed projects can thus call on competent
French actors (consulting firms, enterprises, local
authorities, research institutes and NGOs) in the
domains of sustainable development, environmental
protection and the fight against climate change to
share their experience and propose innovative and
effective solutions to Chinese partners.
The French Global Environment Facility (FFEM)
and French Environment and Energy Management
Agency (ADEME) can also support the technical
assistance components of certain projects.
11
Green Solidarity project
for post-earthquake reconstruction in Sichuan
The partnership approach is
embodied in the support AFD
provided to China in the aftermath
of the earthquake on 12 May 2008.
Under the reconstruction program,
for which AFD allocated a USD
200 million loan, several French
actors have been mobilized for the
following projects:
Infrastructure:
Construction of water treatment
plants, restoration of roads,
bridges and river banks, waste
collection.
Biogas:
Construction of 100,000
individual digesters for rural
families.
French experts (NGO, consulting firm) have been involved. Their
contributions have facilitated the implementation of the program
and the introduction of international best practices, particularly as
regards the environmental and social impacts. French high-tech water
treatment equipment has been selected by the City of Deyang to equip
its new water treatment plant.
AFD has also funded the publication of
a “Guide for the Construction of Rural
Houses", which focuses on seismic
standards and energy efficiency. It
was produced in cooperation with
MOHURD and the Sichuan Provincial
Commission for Construction.