The Asian Development Bank (ADB) has agreed to provide $275m to help China reduce transport-related green house gas emissions by deploying bus fleets that operate on clean fuels.

Funds available to five financial leasing companies will be lent for the purchase of buses fueled by compressed natural gas (CNG), liquefied natural gas (LNG), electricity and hybrid fuels.

Commenting on the initiative ADB director generation of private sector operations Philip Erquiaga remarked that the agency was to keen remove financial bottlenecks that prevented a greater number of green buses from plying on Chinese streets.

ADB has set itself a target of having 5,000 new green buses, out on the streets of major Chinese cities by 2018 resulting in the reduction of 1.31 million tons of green house gas emissions per annum.

The program will provide critical long-term finance and may also help leverage co-financing to promote the development of clean bus leasing business in China.