Chongqing - Huaneng Liangjiang gas power station phase II, the first project in Chongqing to receive climate finance, is expected to connect one unit to the power grid by the end of 2024, according to Liangjiang New Area. The project is scheduled to reach full operation by the electricity consumption peak of the 2025 summer.

Huaneng Liangjiang gas power station phase II is located in Liangjiang New Area. (Photo/Liangjiang New Area)

In September 2022, the project was selected for the National Project Library of Climate Investment and Financing and received a 300-million-yuan (USD 41.4 million) low-interest loan from the Bank of China. Last April, a construction fund of 120 million yuan was granted to establish two gas-steam combined cycle units.

When completed, the station will serve as the largest clean gas power station in Southwest China, with an annual power generation output of 10.6 billion kilowatts. It will save 1.3 million tons of standard coal and reduce carbon dioxide emissions by over 2 million tons per year.

Climate investment and financing refer to financial resources that support actions that help address climate change. By providing low-cost finance and supporting green enterprises to grow, it serves as a measure to promote a green economy and a tool to reach carbon peak and neutrality.

A project library connecting government, banks, and enterprises has been established in Chongqing as a matchmaker between needy enterprises and banks. So far, 31 projects have been funded through the project library, accessing a total amount of over 7.4 billion yuan.

Through the project library, Liangjiang Changxing Power borrowed 470 million yuan from the Bank of China for its CCHP (Combined Cooling, Heating & Power) plant. "A one percent lower rate means 4 million yuan saved for the company," according to He Xiaoji, head of the company's production and technology department.

Over the past few years, Chongqing has released multiple action plans to improve its policy framework to reach carbon peak and neutrality. In 2023, the municipality cut 6.84 billion yuan of tax by implementing green tax incentives, and its green loan balance reached 680 billion yuan.

 (The original author is Guo Shuyu from Liangjiang New Area Media Center)