CCCFL - SHANXI YELLOW RIVER BASIN FORESTS

Promoter – Financial Intermediary

PUBLIC ENTITY(IES)

Location

• China

Description

The project establishes 19,140 hectares of new forests on environmentally vulnerable barren hills, eroded slopes and abandoned agricultural lands in the upper reaches of the Yellow River basin in Shanxi province in China. The project is an allocation under the China Climate Change Framework Loan (CCCFL, 2006-0086).

Objectives

The project objectives are aligned with CCCFL climate change mitigation targets by sequestering carbon and decreasing CO2 emissions. Adaptation to climate change is addressed by increasing forest area and enhancing resilience to changing weather conditions. The project thus delivers an important contribution to the Bank's Climate Action objective. The project contributes to the socioeconomic development of the Shanxi province with a focus on remote rural areas and villagers living in poverty.

Sector(s)

• Agriculture, fisheries, forestry - Agriculture, forestry and fishing

Proposed EIB finance (Approximate amount)

EUR 25 million

Total cost (Approximate amount)

EUR 50 million

Environmental aspects

The project is to establish new shelter forests on abandoned and low-yielding lands so as to protect ecologically fragile degraded habitats, strengthening the resilience of local ecosystems to severe weather events and protecting against soil erosion. In addition to the soil and habitat protection, the project will supply forest fruits and timber. At least 12 different native species will be planted. The project advocates environmentally and socially sustainable management and supports related capacity building.

Procurement

The Bank will require the promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.

Status

Approved - 24/07/2015