• KfW is providing loans to China to improve water protection on the Hanjiang River - Joint agreement signed in Berlin

The Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection has commissioned KfW to finance water protection measures in China. The aim is to reduce global marine pollution. Federal Minister for the Environment, Carsten Schneider, welcomed a high-ranking delegation from the Chinese Ministry of Finance to Berlin today, where they held talk with KfW and representatives from the Federal Ministry for the Environment. During the meeting, KfW and the Chinese Ministry of Finance signed an initial loan agreement amounting to around EUR 70 million to improve water protection on the Hanjiang River. Federal Environment Minister Carsten Schneider had visited China at the end of March, where he also had the opportunity to speak to the Chinese Minister of Finance. The People’s Republic of China is of central importance to global climate and environmental protection.

Federal Environment Minister Carsten Schneider:

“Every gram of microplastic that doesn't end up in the sea protects our global water cycle. With this in mind, we need to address the sources where these problems are extensive. China is an important partner for global environmental and climate action. For this reason, the Federal Ministry for the Environment has commissioned KfW to provide financing in the field of environmental and climate action as part of a strategic partnership. It is an important first step, if we can help to improve water protection on the Hanjiang River through KfW’s financing.”

Stefan Wintels, Chief Executive Officer of KfW:

“The People’s Republic of China is of central importance to global climate and environmental protection. This applies to the reduction of carbon emissions and to global biodiversity conservation. It is in Germany’s very best interests to preserve these global assets. Using its own funds at its own risk, KfW is making an important contribution to climate and environmental protection.”

The Hanjiang River is a major tributary of the Yangtze River, which currently still contributes to a very high volume of plastic waste entering the world’s oceans. The project includes environmental rehabilitation measures on the Hanjiang River as well as nature-based solutions for wastewater collection, including a new rainwater treatment system. The project thus contributes to reducing global marine pollution.

Following the conclusion of Germany’s decades-long cooperation with China in the area of development finance, the Federal Ministry for the Environment and KfW are now continuing the collaboration in the field of climate and environmental finance with this financing agreement. As one of the world’s largest promotional banks, KfW can contribute to climate and environmental protection in China through its long-standing expertise and tailored financing solutions. It also has 40 years of experience and strong, long-standing relationships with Chinese partners. To implement the project, KfW is working closely with the Ministry of Finance on the Chinese side.

KfW’s financing on behalf of the Federal Ministry for the Environment is carried out exclusively from KfW’s own funds without any contribution from budget funds or the provision of guarantees from the Federal Government. KfW’s loans will be repaid with interest. These are not public development grants.