The proposed Chemical Industry Energy Efficiency and Emission Reduction Project (the Project) will use the financial intermediation loan (FIL) modality to finance energy efficiency and reduce emissions from various plants belonging to China National Chemical Corporation (ChemChina). ChemChina is the largest state-owned-enterprise and a major producer of basic chemicals, plastics, fine and specialized chemicals, petrochemical product in the People’s Republic of China (PRC). Under the Project, an industry-specific energy service company (ESCO) is established to serve as a platform to disseminate technologies addressing major challenges faced by the PRC’s chemical industry. As an FIL, the Project has been classified by ADB as environment category “FI.”
Environmental impact assessment (EIA) procedures have been established in the PRC for over 20 years. Domestic EIA studies are required to be undertaken by relevant PRC environmental laws and regulations. National and local legal and institutional frameworks for EIA review and approval have been established to ensure that proposed projects are environmentally sound, designed to operate in line with applicable regulatory requirements, and are not likely to cause significant environment, health, social, or safety hazards. The domestic EIA reports for CGY and DSC subprojects were prepared by qualified EIA institutes and were approved
on 17 April 2015 and 12 March 2015, respectively.
ADB’s Safeguard Policy Statement (SPS, 2009) has also been carefully considered. The two subprojects have been classified by ADB as environment category A, requiring the preparation of an EIA (this report). As both subprojects involve existing facilities, environmental audit was conducted for both subprojects. All applicable requirements of the SPS have been addressed in this EIA and due diligence (audit) report.