The Asian Development Bank (ADB) has agreed to support the development of sustainable urban transport in China and facilitate the reduction of carbon emissions in the country.

The regional development bank has signed an $80m loan agreement with the Bank of Communications Financial Leasing (BOCFL), a financial leasing company in China.

The proceeds will be used to fund the lease of new energy buses (NEBs), which will include battery-powered electric buses with zero direct emissions.

Speaking of the development in China, ADB Private Sector Financial Institutions Division director Christine Engstrom said: “The extensive use of private cars in cities has caused congestion, as well as air and noise pollution—all of which can be reduced if we encourage residents to shift to sustainable modes of public transport.

“The new energy buses from the project, which include battery-powered electric buses and buses running on fuel cells with zero direct emissions, will not only increase people’s mobility and access to services but also contribute to lessening pollution in the country, reducing greenhouse emission and leading to a green path of recovery from the Covid-19 pandemic.”

A wholly-owned subsidiary of the Bank of Communications, BOCFL has been involved in financing green buses in the country.

BOCFL chairman Zhao Jiong said: “BOCFL will continue to play an active role in promoting green industries and the circular economy, and maintain our efforts to support energy conservation and environmental protection by expanding operations in green public transport, new energy vehicles, renewable resources, and clean energy.”

Established in 1966, ADB works to support social and economic development in Asia.

Recently, the financial institution approves a $100m loan for rural road works in Bangladesh.