Based on the results of a carbon rating report, the Linyi branch of Qilu Bank in Shandong recently granted its first "Lintan Loan" of 10 million yuan ($1.5 million) to Shandong Qingguo Food Co Ltd, a client of the bank's Yinan sub-branch.

The aim of the initiative is to provide financial guidance for energy conservation and emission reduction among green and low-carbon enterprises in the region. The Shandong Qingguo Food Co is a key agricultural private enterprise in Linyi which deals in the cultivation, processing and export of vegetables. The company recently applied for a loan from Qilu Bank to purchase edamame soybeans for its "R&D and Industrialization Project of Key Technologies for Green and Efficient Full-Process Production of High-Quality Vegetables".

Upon learning of the company's needs and objectives, the bank decided the "Lintan Loan" would be a good fit and contacted the company to authorize the issuance of a carbon rating report and to offer assistance in applying for the loan. According to the report, the company is capable of progressive transformation in the pursuance of dual carbon goals. Referencing the carbon rating report, Qilu Bank conveyed its support for the company's energy conservation and emission reduction efforts, opening a green channel for financing such initiatives. Based on the report, the company secured a loan at a preferential interest rate from the bank.

The "Lintan Loan" business model is based on a whitelist of green and low-carbon enterprises and carbon rating (carbon credit) reports. It offers differentiated preferential terms in interest rates, loan tenure and credit limits to enterprises with outstanding green and low-carbon performance. This approach provides precise "pricing" for pollution reduction and carbon emission cuts, accurately supporting enterprises in their green and low-carbon transition while helping financial institutions enhance their green financial service capabilities and risk prevention.

Qilu Bank's Linyi branch intends to take full advantage of the "Lintan Loan" to expand cooperation with green and low-carbon enterprises. With more flexible financial products, the bank aims to enhance the quality and efficiency of its green financial services, supporting the green transition of the city's economic and social development.