EIB President highlights importance of forestry investment to tackle climate change during Inner Mongolia visit

Werner Hoyer, President of the European Investment Bank, currently on a five day visit to China today visited a transformational forestry project in Inner Mongolia. The 31,000 hectare Inner Mongolia Forestry Project is the first forestry operation in China financed by the European Investment Bank in China. Since 2008 the European Investment Bank, the world’s largest lender for climate related investment, has supported forestry projects across China in 14 provinces.

The visit to Inner Mongolia took place a day before President Hoyer will formally agree to strengthen cooperation between the European Investment Bank and China to finance climate related investment with Finance Minister Lou Jiwei.

“The European Investment Bank is committed to supporting investment around the world’s to tackle climate change and protect vulnerable environments from a changing climate. We are pleased to support the flagship Inner Mongolia Forestry Project as the leading international financial institution supporting forestry projects in Asia. Experience gained from this project has strengthened the European Investment Banks efforts to reduce desertification and erosion of vulnerable areas across China through afforestation.” said Werner Hoyer, President of the European Investment Bank.

The Inner Mongolia Forestry Project helps to reduce desertification and wind erosion in the north-western region of China. During the visit the EIB Delegation also met with the Provincial Governor of Inner Mongolia and saw how local district heating systems were being converted to use gas instead of coal.

The European Investment Bank is providing EUR 580 million to support total investment of more than EUR 1.2 billion in forestry projects in 14 provinces across China. These programmes include afforestation schemes and rehabilitation of degraded forests, as well as initiatives to improve forest management. Together the schemes will enable long-term natural storage of 1.6 million tons of carbon dioxide a year through carbon sequestration.

The individual schemes have been selected to reduce erosion and prevent landslides, combat desertification and wind erosion, including in Inner Mongolia and reduce the risk of flooding. The forest projects will produce sustainable timer and non-timber forest products.