Deutsche Bank had committed to facilitate 200 billion Euros in sustainable financing and investment by the end of 2025 but has now become more ambitious, bringing the target forward to year end 2022, after the bank already reached 157 billion Euros by the end of 2021. Huaneng Leasing has been a long-standing client of Deutsche Bank China, with a clear commitment to providing comprehensive financial services that support clean energy development. The deal marks Deutsche Bank’s first sustainable trade finance transaction aligned to the Common Ground Taxonomy (CGT), with the Use of Proceeds to finance Huaneng Leasing’s direct leasing for two wind power development projects in China. This transaction falls under Scenario 1 outlined in the CGT with clear overlaps between EU and China green taxonomies that can be considered comparable within the scope/for the purpose of the CGT. The transaction also aligns to UN Sustainable Development Goals 7 and 9, related to Renewable Energy and Infrastructure development.
International investors have been sensitive to differences in standards and approaches to green financing in global markets and have sought more clarity and a unified approach. To address this need, the Common Ground Taxonomy- (CGT) was published by the International Sustainable Finance Platform (IPSF) Taxonomy Working Group Co-chaired by the EU and China in November 2021. The CGT is a key milestone in providing clarity about the commonality and differences between the EU’s and China’s green taxonomies. It is expected to play a pivotal role in increasing comparability of sustainable finance taxonomies and definitions of green and/or sustainable activities globally. Deutsche Bank provides retail and private banking, corporate and transaction banking, lending, asset and wealth management products and services as well as focused investment banking to private individuals, small and medium-sized companies, corporations, governments, and institutional investors. Deutsche Bank is the leading bank in Germany with strong European roots and a global network.