Green credit has developed well in its first phase in China, but
still faces many difficulties, says an article in Beijing
News. The following is an excerpt:
Last Wednesday, Pan Yue, vice-minister of the State
Environmental Protection Administration, said that after six
months' work, the first phase of green credit had made progress,
though there is still a large gap between achievements and
expectations, and systematic and technological difficulties still
stand in the way of the spread of the system.
China has a good foundation for green credit, but we must
realize that much work needs to be done in expanding the program.
The authorities only recently established green credit management.
Work on the environmental protection manual for green credit has
started. But environmental protection standards for related
industries have not yet been promulgated and there is no system in
place for publicity.
It is therefore necessary to improve the management system of
green credit. First of all, the authorities should expedite the
promulgation of the green credit management manual. Financing
standards for international projects could be used as
templates.
Second, every department of the government should work together
to increase the spread of information about green credit. At
present, few businesses are actually on the blacklist for green
credit, while banks still lack information about many of those
applying for financing and loans, which affects the work of green
credit. Financial institutions and environmental departments should
cooperate closely to establish a good information communication
channel.
Third, financial institutions must try their best to be
professional.
(China Daily February 18, 2008)