Tianjin's first dual-pledge transformation financial loan has been successfully implemented.

This article is reprinted from: Tianjin Daily

Yue Fuyu

This newspaper report (Reporter Yue Fuyu): Recently, under the guidance of the Tianjin Branch of the People’s Bank of China and other departments, Tianjin Binhai Rural Commercial Bank issued a 50 million yuan loan to Xintian Steel United Special Steel Co., Ltd. This loan adopts an innovative “Transformation Finance + Carbon Quota Compliance” dual linkage model, the first of its kind in the city, demonstrating a positive example of financial support for the green transformation of high-carbon enterprises.

The company is a core backbone of Shanghai Delong Steel Group, one of the Fortune Global 500 companies, and is a large-scale steel enterprise integrating sintering, ironmaking, steelmaking, and rolling. In recent years, the company has continuously promoted energy saving and carbon reduction through management optimization, technological transformation, and structural adjustment, and has developed a clear green transformation plan, creating strong demand for financial services.

The loan is specifically used for projects to improve energy efficiency and replace with clean energy, in line with the central bank’s standards for transformation finance in the steel industry. The loan sets two key linkage indicators—“unit product carbon emission intensity” and “carbon quota compliance,” with interest rates directly linked to the completion of these two indicators. To ensure the effectiveness of the transformation, the bank also engaged third-party professional organizations to monitor and track the indicators during the loan period. It is estimated that after project implementation, carbon dioxide emissions will be reduced by 175,400 tons.

Transformation finance is an extension of green finance, mainly serving the green upgrading of traditional high-carbon industries such as steel and chemicals. In recent years, the Tianjin Branch of the People’s Bank of China has taken the pilot of transformation finance standards for the steel industry as an opportunity to build a policy framework system, guiding more financial resources to key areas for carbon reduction. While supporting enterprises in lowering emissions, it also provides strong support for the city’s green and low-carbon economic development.