The World Bank has approved a loan totalling $500 million (£355m) for air pollution control in China.
The financing will support a project in the Jingjinji region, hoping to reduce pollutants and carbon emissions through increasing energy efficiency and clean energy.
It aims to cut coal production use by improving energy efficiency in the industrial and building sectors as well as using solar, wind and biomass technologies.
The World Bank said it has been working with China to help it move towards “more market-based approaches” for energy conservation.
Last month it was revealed China installed almost half of new wind capacity globally in 2015.
Wang Xiaodong, World Bank’s Senior Energy Specialist and team leader for the programme added: “Energy efficiency and clean energy are win-win options to mitigate both air pollution and climate change simultaneously. This programme will contribute to achieving the results of the State Council’s Air Pollution Prevention and Control Action Plan and help mainstream green financing in banks.”
A new legal challenge was launched against the UK Government last week over its “repeated failure” to tackle air pollution.