China inked a loan agreement with France here Thursday under which 35 million euros will be used in an afforestation program in China's southwest Yunnan Province.

The agreement was signed by China's Minister of Finance, Xie Xuren, and Christine Lagarde, Frnace's Minister for Economic Affairs, Industry and Employment.

The program, financed by the French Development Agency (FDA), is the first joint afforestation project since the two nations established a climate change partnership November 2007.

The program will enhance water and soil conservation, maintain sustainable forest operations and management and improve the ecological environment, Xie said.

The MOF has signed 12 loan agreements with the FDA since the two sides established bilateral cooperation in 2004, bringing 705 million euros to programs in China involving transportation, energy, infrastructure and environmental protection.