Innovative 'Photovoltaic Climate Loan' initiative boosts green finance in Ningbo

Ningbo, Zhejiang province, launched the nation's first "Photovoltaic (PV) Climate Loan" worth 7.66 million yuan ($1.05 million) on July 11. This initiative merges finance and meteorological data to bolster clean energy projects, setting a new standard for green finance in China.

As the brainchild of a strategic partnership between the city's meteorological bureau and the Industrial Bank, the loan marks a paradigm shift in financing tailored for PV enterprises. By leveraging precise meteorological data, this collaboration eliminates the uncertainties that typically hinder traditional funding processes, offering a comprehensive evaluation framework for PV projects.

Hu Bo, deputy director of the Ecological Environment Meteorological Center at the Ningbo Meteorological Bureau, highlighted the transformative impact of the loan.

"Previously, banks approving loans for PV projects often struggled with unclear third-party data, making it challenging to assess the true potential of projects. However, with the robust data engine and cutting-edge algorithms of the city's meteorological bureau, a detailed 'sunshine resource map' was created for the bank, covering every district and PV hotspot. This scientific and precise evaluation has equipped the bank with a discerning eye, allowing them to perceive the intrinsic value of each project," Hu said.

The impact of this transformation is tangible, with PV enterprises in Ningbo benefiting from 127,600 yuan in increased cash flow during the recovery phase and a two-year reduction in the repayment period, leading to savings of around 62,000 yuan in loan interest.

The PV power station supported by the loan is expected to slash carbon dioxide emissions by up to 32,784.87 metric tons over the next 25 years. It will also mitigate harmful emissions of sulfur dioxide, nitrogen oxides, and particulate matter, contributing to a healthier environment.

"In promoting the integration of meteorological and financial services, we have established interdisciplinary innovation teams focusing on green and digital finance and committed to technological research and infrastructure development to empower Ningbo's economic and social development with the 'meteorology+' model," said Bao Yuejian, deputy director of the Ningbo Meteorological Bureau.

Moving forward, the bureau will continue to collaborate with financial institutions, enterprises, and research institutions to develop meteorological financial tools, unlock the value of meteorological data, and inject new vitality into the green finance evaluation system.