The Asian Infrastructure Investment Bank (AIIB) has approved its first loan to China.
The $250 million loan will be used to build a natural gas pipeline network in the suburbs of Beijing. More than 210,000 households in over 500 villages are expected to be covered.
The project is expected to reduce annual carbon dioxide emissions by 595,700 tonnes, particulate matter by 3,700 tonnes, sulfur dioxide by 1,488 tonnes and nitrogen oxide by 4,442 tonnes.
AIIB President Jin Liqun said China's commitment to reducing its reliance on coal will changelives and improve the environment.
"That is why we are investing in a project aligned with their ambitious plan," Jin added.
After being completed in 2021, the project is expected to help wean Beijing off coal-fired powergeneration.