The People's Bank of China's Inner Mongolia Autonomous Region Branch has been actively promoting the pilot application of transition finance standards for the copper industry in 2024, guiding its sub-branches in various leagues and cities as well as financial institutions to work in concert to provide targeted support for the low-carbon transition of the copper sector. Recently, the first batch of transition finance loans for the copper industry in Inner Mongolia has been successfully disbursed.
Seven banks, including Industrial and Commercial Bank of China's Baotou Branch and China Minsheng Bank's Baotou Branch, recently granted a total of 1.49 billion yuan in transition finance loans to Baotou Huading Copper Industry Development Co., Ltd. These funds are designated for the company's green, low-carbon upgrading and renovation project for smelting and for the construction of a project supporting the green copper-based materials supply chain. The company's transition pathway and measures have been certified as compliant with relevant requirements in the "Catalogue of Transition Finance-Supported Economic Activities (Copper in the Metallurgical Industry)," including "Energy-saving Technology Renovation of General Equipment for Copper Smelting" and "Production and Operation of Green-Certified Copper Smelting Enterprises." Upon project completion, it is estimated to achieve an annual reduction of approximately 5,711 tons of carbon dioxide emissions.
The People's Bank of China's Chifeng City Branch facilitated Bank of Communications' Chifeng Branch to innovatively adopt a "transition finance + sustainability-linked" financing model. Recently, it granted a 1.8 billion yuan project loan line of credit to Chifeng Jintong Copper Co., Ltd. This funding is intended for procuring raw materials in preparation for the operation of the second-phase project involving the upgrading, relocation, and renovation of copper smelting processes. This transition finance transaction has been certified as meeting the standards and requirements for "Construction of Renewable Energy Utilization Facilities" as outlined in the "Catalogue of Transition Finance-Supported Economic Activities (Copper in the Metallurgical Industry)." After the project is completed, it is projected that by 2030, the energy consumption per unit of cathode copper product will be reduced by 15 kilograms of standard coal per ton compared to 2025, reaching Energy Consumption Limit Level 1. The project is expected to achieve an annual carbon reduction of 60,000 tons, effectively enhancing the company's overall energy efficiency.
"In the next step, we will fully leverage the guiding and coordinating role of policy, further advance the pilot application of transition finance standards for the copper industry, and continuously empower the green and high-quality development of the region's economy and society through finance," stated a relevant official from the People's Bank of China's Inner Mongolia Autonomous Region Branch.
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