The Asian Infrastructure Investment Bank (AIIB) has approved a $250 million loan to Beijing Gas Group Co for a coal to gas conversion project in rural Beijing. The initiative, the bank's first corporate financing deal in China, aims to replace coal with natural gas for cooking and heating in over 216,000 households across 510 villages. Expected to reduce coal use by 650,000 metric tons annually, the project aligns with China's broader efforts to combat air pollution and transition to cleaner energy sources.
The AIIB announced a $250 million loan on Monday to fund a natural gas project in Beijing, marking its first corporate financing deal in China. The funds will support Beijing Gas Group Co in constructing natural gas distribution networks, pipelines, and household connections to replace coal use in rural areas. The project targets 216,750 households across 510 villages and is expected to reduce annual coal consumption by 650,000 metric tons.
The initiative reflects China's push to curb pollution through stricter environmental regulations, including coal to gas conversions. AIIB President Jin Liqun emphasized the project's alignment with the bank's mission to promote sustainable development, noting its potential to reduce greenhouse gas emissions and support economic growth in one of Asia's key economic hubs.
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