What is green credit?

Green credit is actually a kind of credit policy-opinions on implementing environmental protection policies and regulations to prevent credit risks.

Green-creditpolicy is a brand-new credit policy jointly put forward by State Environmental Protection Administration, People's Bank of China and China Banking Regulatory Commission on July 12, 2007, aiming at curbing the blind expansion of industries with high energy consumption and high pollution.

Knowledge expansion

Policy content:

The Opinions on Implementing Environmental Protection Policies and Regulations to Prevent Credit Risks stipulates that commercial banks should take the enterprise's environmental compliance as one of the necessary conditions for loan approval for credit control of enterprises and projects that do not conform to industrial policies and environmental violations.

The Opinions on Implementing Environmental Protection Policies and Regulations to Prevent Credit Risks also designs more detailed provisions on loan types. If environmental protection departments at all levels investigate and deal with projects that exceed the standard, fail to obtain pollution discharge permits or fail to complete the task of governance within a time limit, financial institutions should strictly control loans when reviewing the application for working capital loans of their affiliated enterprises.

At the same time, the Opinions on Implementing Environmental Protection Policies and Regulations to Prevent Credit Risks stipulates that environmental protection departments at all levels should investigate and deal with illegal projects that have not been approved for construction or leapfrog approval, environmental protection facilities have not been completed at the same time as the main project, and they have been put into production without environmental protection acceptance, and should promptly investigate and deal with the situation publicly. That is, it is necessary to inform financial institutions of the environmental information of enterprises. Financial institutions should strictly examine and approve, issue, supervise and manage loans according to the environmental protection notice. Financial institutions shall not increase any form of credit support for new projects that have not passed the EIA approval or the acceptance of environmental protection facilities.

Refer to "Green Credit" from Baidu Encyclopedia