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)