The World Bank has agreed to lend $80 million to China to help the country increase the development and utilization of coal bed methane (CBM) and coal mine methane (CMM) as substitutes to coal.

The loan will help the nation meet growing demand for energy and reduce greenhouse gases and local air pollutants.

The Coal Bed Methane Development and Utilization Project will focus on Shanxi province, which produces one quarter of China's coal production of 2.6 billion tons and hosts one-third of the estimated 32 trillion cu m CBM resource in the country.