Pan Yue Points out that Credit Leverage Regulating Effect Shall Be Brought

into Full Play in a Letter to the China Green Credit and Economic Structural Adjustment Forum

The China Green Credit and Economic Structural Adjustment Forum was held by the Environmental Economy and Policy Research Center of the Ministry of Environmental Protection in Beijing on January 27. The center signed a cooperation memorandum with Standard Chartered Bank (China). The two parties will further promote the long-term healthy development of green credit in China through cooperation.
In his letter to the forum, Pan Yue, Deputy Minister of Environmental Protection, pointed out that the general goal of China’s macro-economy in 2010 is to adjust the industrial structure and transform economic growth modes. The question of how to bring credit leverage adjustment effects into full play to promote economic sustainable development and establish a green capital market is a significant breakthrough in adjusting China’s current economic growth mode and an efficient policy measure to directly curb the fund expansion impulse of high-polluting and high-energy-consuming enterprises. By means of green credit, the capital chain of polluting enterprises will be cut off and loans granted to high-energy-consuming, high-emission industries and overcapacity industries will be strictly controlled. Environmental-friendly enterprises shall be strongly supported and the promotion function of finance on regulating economic structure be put into full play.
The two parties expressed that they will strengthen cooperation and communication on green credit based on a mutually beneficial principle and on experience in environmental protection policy research and sustainable financial service field, which includes training activities on green credit management and environmental risk evaluation, to jointly boost financial innovation and develop green financial products. The two parties will seek to build a platform that shares the environmental policies and practices of domestic and international banks and financial institutions, and to explore a new path for promoting China’s green credit. Standard Chartered Bank announced its adoption of the Equator Principles in 2003, and is promoting green credit all over the world to realize the sustainable development of financial institutions. (Source: official website of the Ministry of Environmental Protection)TOP