By Daniel Martin PUBLISHED: 18:34 EST, 9 April 2012 | UPDATED: 02:39 EST, 10 April 2012 British taxpayers are underwriting a multi-million-pound loan to help China plant trees as part of a project to tackle climate change. The Treasury has agreed to a European Union scheme to help the country grow forests to compensate for its contribution to global warming. The Luxembourg-based European Investment Bank – of which the Chancellor is a governor – has lent China  £210million (250million euros) to kickstart the project. Reforestation: The Treasury has agreed to help China grow forests. Pictured, trees in the China's Xinjiang Uygur region
@highlight
UK agrees to underwrite loan which could cost us £30million
@highlight
A total of £210million will support forestry projects
@highlight
Through Europe, UK will underwrite loans for years
The @placeholder insisted that the risk to the British taxpayer was a remote one.