Northern China Agriculture and Food Ecosystem Low-carbon Transformation Project
Northern China, People’s Republic of China, 2024 – 2025
Client: Asian Development Bank
Role: Technical Assistance Team
Project Background and Objectives
The Northern China Agriculture and Food Ecosystem Net Zero Transformation Project is being prepared with a total proposed investment of approximately USD 400 million, including a USD 200 million loan from the Asian Development Bank. The project aims to accelerate low-carbon and climate-resilient transformation across agricultural production, food processing, and value chain development in Northern China.
The project is structured around two core outputs: (i) establishment and operationalization of an Alternative Asset Climate Investment Fund (AACIF); and (ii) enhancement of institutional capacity for low-carbon and climate-resilient development in the region.
Financing Structure
combining:
- A USD 300 million Financial Intermediary Loan (FIL) to support debt financing for eligible small and medium-sized enterprises (SMEs); and
- An equity investment facility under the AACIF to catalyze private investment in sustainable and value-added agriculture and food system subprojects.
This dual equity–debt structure is intended to mobilize private capital while reducing investment risks for climate-aligned agribusiness ventures.
SIET’s Role and Services
As the technical assistance consultant, SIET supports full project preparation and implementation readiness through the following key tasks:
- Identification and screening of representative subprojects for financing
- Technical, economic, and financial feasibility assessment of selected subprojects
- Review of environmental and social safeguard requirements and preparation of safeguard documents
- Design of an innovative financial intermediary loan structure supporting low-carbon transition in agriculture and food systems
- Development of a monitoring, evaluation, reporting, and verification (MERV) system for carbon footprint management
- Capacity development of the executing and implementing agencies on project management and implementation
- Preparation of all linked documents and supplementary documents required for the ADB Report and Recommendation of the President (RRP)
Outcomes and Value Added
The technical assistance establishes a robust, climate-aligned financing platform capable of deploying large-scale equity and debt investments into net-zero agriculture and food system transformation. SIET’s work ensures that the project is financially sound, safeguard-compliant, and fully aligned with ADB climate finance and low-carbon development objectives.