Chinese banks lend to green projects

by Richard Kilner

Story link: Chinese banks lend to green projects

Over the course of 2007 China’s five largest banks offered a combined sum of over 100bn yuan (US$4.08bn) for loans aimed at green projects, the China Banking Regulatory Commission revealed today.

The CBRC has also stated that 2007 saw some 30 companies guilty of high pollution levels being financially blackballed, and refused credit from the big five banks.

The 106bn in loans given out by the banks was used for projects designed to lower emissions and thus save energy.

High polluting industries requiring a great deal of energy such as chemicals, iron and steel and thermal power generation have altogether been lent 1.7 trillion loans.

However, the Chinese government has launched a range of policies in an effort to improve the country’s green credentials.

From yesterday, the State Environmental Protection Administration has required companies desiring to raise new capital or go public to pass a green assessment.