2024 KCP Application
Ma’anshan Rural Commercial Bank
Winner or Finalist
Customers & Partnerships
Primary Project Category:
Project Summary / Description:
Cumulative global investments in green and low-carbon projects must reach into the multiple trillions of dollars over the next decade to achieve the Paris Agreement targets. This scale exceeds the capacity of public funding and mobilization of private capital is necessary. However, few structures exist in the market today for individuals and institutional investors to deploy private capital for green and low-carbon projects. MRCB seeks to fill this gap by establishing an innovative green commercial bank business model and pioneering new financing mechanisms and products to better leverage private capital to meet global climate change mitigation goals.
Best Estimate of GHG Avoidance/Reduction of This Project (Tonnes CO2 Equivalent/Year):
Impact on Underrepresented Groups:
On the economic diversity side: - Our project presents a credible model of green transformation for small and medium-sized banks in China and around the globe. - The growth rate and efficiency of China's small and medium-sized banks have been relatively slow. The banks‚ services are facing severe homogenization. - Banks need to build competitive advantages in market segments, and realize differentiated operations. - MRCB‚ green transformation demonstrates a path to market differentiation on the basis of both environmental sustainability and economic profitability for small and medium-sized banks in China and globally. 2) With green investments at the center of its operations, MRCB is offering support to Chinese and global economic institutions as they go green, and tapping into more potential green markets. MRCB‚ model will support the green transformation for the Chinese and global economy. 3) MRCB‚ green transformation contributes to and enables a green and sustainable growth of rural economies. - The attention and investment in agriculture, rural areas, and farmers are obviously insufficient in terms of China's green finance services. - MRCB‚ green transformation simultaneously advances rural economic development, poverty alleviation, and environmental sustainability, by providing access to credit for viable green projects, such as for: energy efficiency; renewable energy; water conservation; green transportation; nature protection, ecological restoration; disaster prevention; resource recycling; green forestry; green agriculture, etc. ¬∑ Examples of financial products targeting rural farmers and increasing economic diversity include: - Energy Efficiency (EE) Retrofit Loan for Self-built Homes - Solar Loans for farmers - Loan Product for Crayfish and Rice Co-production - Edible Lilly Bulb Loan - Kushui Rose Loan - Loan Product for Grape Production MRCB mobilizes and cultivates green awareness among individual consumers. We also add momentum to green development by offering consumers financial products that reward green behaviors and investments. - We have developed a WeChat Mini App called Green Commercial Bank to encourage our employees and clients to switch to low carbon transport. By recording their energy-saving and low carbon lifestyle in the app, users can earn points and trade their points for giveaways and eligibility for our forestation program. - To encourage the purchase of green buildings and green household items, in 2018, we launched a green mortgage product targeting green apartments buyers with incentives including interest discount and green consumer line of credit. Additionally, a consumer car loan at a discounted interest rate is available to encourage the purchase of new, hybrid energy and low emission cars. On the gender diversity side: we call on every member of society to take part in green development by adopting an energy-saving and low carbon life style.
Research or Economic Modeling
Measurement, Reporting & Validation
Maanshan Rural Commercial Bank (MRCB) has a unique mission to transform into the first green commercial bank in China and to provide a model for other small commercial banks in China, and globally, as to how to fully embrace green finance while remaining profitable. MRCB is committed to achieving the following over the next five years: - 60% of MRCB‚ total outstanding loans will go to green projects; - 70% of MRCB‚ products will be green financial instruments; - 80% of MRCB‚ employees must obtain international green finance certification; - 100% of properties owned by MRCB will be green certified; - MRCB will be a 100% carbon neutral bank. Considering that today only 9% of the 21 major Chinese banks‚ total loan portfolio is for green projects (i.e., energy savings, pollution treatment, clean transport), meeting these targets requires innovation and breakthroughs in all aspects of commercial banking (Xinhua 2018).
You can find about our project at:
‚ WeChat News Feed;
(MRCB‚ official website);MRCB‚ WeChat News Feed;
Bank‚ WeChat News Feed;