AIIB Approves $250Mln Loan for China to Reduce Country’s Coal Use

The Chinese authorities' costly concept is aimed at reducing carbon dioxide emissions by creating a large-scale domestic network for gas supply.

BEIJING (Sputnik) – The Asian Infrastructure Investment Bank (AIIB) said on Monday in a statement that it has approved a $250 million loan for China in order to reduce the use of coal in the country by connecting more than 210,000 households to a natural gas distribution network.

“The Asian Infrastructure Investment Bank’s (AIIB) Board of Directors has approved a US$250-million loan for a project that will reduce China’s coal use by about 650,000 tons annually through connecting about 216,750 households in approximately 510 rural villages to the natural gas distribution network,” the statement said.

The project is going to reduce annual carbon dioxide emissions by 595,700 tons, according to the statement.

"China’s commitment to reducing its reliance on coal will change lives and improve the environment, and that is why we are investing in a project aligned with their ambitious plan … With our unwavering commitment to helping members meet their environmental and development goals, especially their commitments under the Paris Agreement, it is only fitting that our first investment in China will introduce sustainable infrastructure that will reduce greenhouse gas emissions and help vitalize one of the most important economic hubs in Asia," AIIB President Jin Liqun said.

The project’s completion is scheduled for 2021.

The AIIB is an international financial institution that invests in infrastructure projects. It was proposed by China in 2013 and launched in October 2014.

The AIIB has 57 founding members, with China, India and Russia having the largest share of votes on its board of directors.