The State Administration of Foreign Exchange Shanghai branch launched a green foreign debt pilot program to advance green finance and support cross-border funding for environmentally friendly industries in Shanghai.

Under the pilot, non-financial companies engaged in green development or low-carbon transition may tap foreign debt funds without occupying a large portion of their existing foreign debt quota, once approved by the administration.

By the end of November 2025, three major enterprises focused on carbon reduction had signed green foreign debt agreements totaling more than 300 million yuan ($42.48 million). The funding will be used for distributed new energy projects, energy storage centers, and circular economy initiatives.

The Shanghai branch has also urged banks to actively promote the policy and match eligible projects with financing channels, ensuring companies can benefit quickly from the new mechanism and guiding capital toward green manufacturing, clean energy, and green infrastructure.

A representative from a Shanghai-based intelligent supply chain enterprise, which secured a $15 million green foreign debt facility through Bank of China's Shanghai branch, noted that the channel had significantly improved cross-border capital allocation flexibility and provided essential support for green manufacturing projects.

BNP Paribas (China) Limited facilitated an additional $29 million green foreign debt arrangement for a distributed solar energy project, enabling the purchase of photovoltaic assets across 40 projects in 11 provinces and cities. The project is expected to generate 80,000-90,000 MWh of electricity annually, with cumulative installed capacity reaching 86 megawatts.

China Construction Bank's Shanghai branch has assisted a major renewable energy company in the signing and registration of green foreign debt to finance the construction and operation of large-scale solar power stations, wind farms, and integrated wind-solar facilities.

Source: Shanghai Observer