The Shenzhen municipal government ruled earlier this year that businesses disregarding environmental laws would no longer be allowed to borrow money from banks and they must make public apologies. These new rules have achieved obvious results in curbing illegal pollutant discharges.

"Improve, improve and improve", those big eye-catching words can be seen inside the Shenzhen Tongxin Circuit Electronic Co., Ltd. The company's CEO, Xu Liangfei, said that Tongxin's 20 million yuan loan was cut off suddenly this July. Later they learned the cause: their illegal discharges. "Now those words constantly remind the staff about environmental protection," said Xu.

"Banks now refuse to lend money to businesses breaking environmental laws," claimed Zeng Qingyu, Director of the Supervision Department of Shenzhen Environmental Protection Bureau.

Shenzhen began to implement its regulations on strengthening environmental protection in January and June of each year. The banks in the city examine the performances of businesses borrowing money from them twice a year, in the beginning of the year and in June. The Shenzhen Environmental Protection Bureau sent the Shenzhen branch of the People's Bank of China environmental protection data; out of the 237 businesses, 147 were guilty of violating environmental laws this year. Banks suspended a total of 113.67 million yuan in loans to four separate businesses.

From November 2004 onward Shenzhen authorities have ruled that businesses breaking environmental laws have to apologize publicly and then take an oath to abide by environmental regulations, as well as accept societal supervision. From January to September 2007, 14 businesses made public apologies via media sources. According to Zeng, Integrating the environmental behaviors of businesses with their public image and reputation will force them to reconsider the consequences of breaking environmental laws.

"Shenzhen has made great progress in environmental protection since it initiated the green loan policy," said Chen Guangrong, Deputy Director of the Guangdong Environmental Protection Bureau. But other Guangdong regions outside of Shenzhen are dragging their feet in carrying out the environmental friendly financing and trade policies. "To fight successfully against illegal environmental activities, these new policies must be put into effect as soon as possible," Chen said.

(China.org.cn by Zhang Ming'ai, October 31, 2007)