In July 2007, the former State Environmental Protection Administration (now Ministry of Environmental Protection, MEP), People’s Bank of China, China Banking Regulatory Commission (CBRC) jointly promulgated Guidance on Implementing Environmental Protection Policies and Rules and Preventing Credit Risks. The milestone move symbolizes that the Chinese government has started to curb environmental problems through regulating bank lending to high polluting and energy intensive industries, and guiding capital to flow to environmentally-friendlier alternatives.
With the support of MEP, CBRC later promulgated another two policies aiming to provide guidance for banks’ risk management on environmental-related risks. Commercial banks actively responded to the policy: Industrial and Commercial Bank of China was the first among all commercial banks to issue internal Guidance of Implement Green Credit Policy; China Merchants Bank announced to join UNEP Financial Initiative; Industrial Bank was the first to adopt Equator Principles.
Under the guidance and support of ministries concerned, SynTao collaborates with the Policy Research Centre for Environment and Economy (PRCEE) of the Ministry of Environmental Protection (MEP) to survey emission control potential and investment opportunities of China’s steel and iron sector, based on which the Green Credit Guideline for the sector will be completed from 2009 to 2011. The project is funded by FCO Global Prosperity Fund. Sichuan Province has been chosen as the pilot province, and the experience and good practices are expected to be disseminated to other provinces.