A Decade Ago: Beijing’s Struggle with Smog
Beijing was once notorious for its severe air pollution, earning the title of the “smog capital of the
world” a decade ago. Leading up to the 2008 Olympic Games, the city faced intense
international scrutiny as hazardous air quality posed serious health risks. Satellite data revealed
alarmingly high nitrogen dioxide levels in the city, leading to widespread respiratory issues and
premature deaths.
In response, China launched a series of bold measures, including restricting car usage, closing
factories, and tightening emissions standards. In 2013, the country announced a comprehensive
five-year action plan to reduce pollution. The initiative aimed to promote electric vehicle
adoption, revive bike-sharing programs, and reroute truck traffic from crowded urban areas.
With a budget of $270 billion, the plan focused on achieving long-term, sustainable development
while protecting public health.
Substantial Improvements in Air Quality
As a result of these efforts, Beijing’s air quality saw a dramatic improvement. According to the
Energy Policy Institute at the University of Chicago, air pollution in the city dropped by 42.3%
between 2013 and 2021. This reduction not only transformed Beijing but also contributed to a
modest global decline in pollution levels during this period.
China’s Green Financing for Clean Air: The Jing-Jin-Ji Program
A key element of China’s environmental strategy was the Jing-Jin-Ji program, which integrated
green finance into its energy policies. This pioneering initiative, the first of its kind in China’s
energy sector, was launched in 2016 to combat air pollution by improving energy efficiency and
supporting clean energy projects. The program was aligned with the Air Pollution Control Action
Plan and China’s 13th Five-Year Plan (2016-2020).
The program involved collaboration with Huaxia Bank, which provided financing for projects that
aimed to reduce emissions and air pollution. These projects focused on energy efficiency
improvements, renewable energy investments, and air pollution control measures.
Key Achievements of China’s Anti-Pollution Drive
Since its launch, the Jing-Jin-Ji program has produced impressive results:
Substantial Financing: A total of 27 subprojects in energy efficiency, renewable energy, and
emissions control were funded, with $1.3 billion invested. Of this, $208 million came from the
World Bank, $430 million from Huaxia Bank, and $662 million from sub-borrowers, effectively
leveraging the loan amount by 5.4 times.
– Green Finance Mainstreaming: Huaxia Bank established a Green Finance Centre, making
green financing a central part of its business strategy. By 2019, the bank’s green financing
portfolio grew to RMB 132.5 billion yuan (approximately $19 billion).
– Emission Reductions: The program helped cut carbon dioxide emissions by an estimated 2.5
million tons annually, contributing to cleaner air in the Jing-Jin-Ji region and supporting China’s
climate objectives.
– Expansion of Renewable Energy: The program facilitated the deployment of solar photovoltaic
(PV) systems, with 73 MW of capacity for commercial projects and installations for over 2,500
rural households.
The success of the program was further supported by a $500 million loan from the International
Bank for Reconstruction and Development (IBRD), which leveraged over five times its value.
The Global Environmental Facility (GEF) also provided additional funding to improve result
measurement, enhance capacity, and develop innovative financial products.
The Jing-Jin-Ji program exemplifies how targeted financing and institutional collaboration can
drive environmental sustainability, offering valuable lessons for other countries tackling air
pollution and climate challenges