IFC invests $40m in China’s green finance

The International Finance Corporation (IFC) has made a strategic equity investment of approximately $40 million in BNP Paribas Consumer Finance Co., Ltd., a joint venture between Bank of Nanjing and BNP Paribas Group.

This investment aims to promote sustainable consumption in China by expanding green consumer credit services, including financing for energy-saving home appliances and environmentally friendly home decoration services.

IFC’s investment is part of its efforts to support China’s green finance sector, aligning with the country’s dual carbon goals of peak emissions by 2030 and carbon neutrality by 2060.

The funds will help BNP Paribas Consumer Finance build a sustainable consumer finance framework and encourage the adoption of low-carbon products and services.

Alan Fullam, Director of IFC’s Financial Institutions Department for Asia Pacific, emphasised the importance of green consumer finance in reducing carbon emissions from consumption, which now accounts for over half of China’s total emissions.

This marks IFC’s first equity investment in a Chinese financial institution in 10 years, reinforcing its commitment to supporting sustainable development in China and globally.

Attribution: IFC

Subediting: M. S. Salama