Discussions On Making Laws On China's Policy Of Green Credit

Since 1990s, with rapid growth of China's economy, as the problems of environmental pollution, resource depletion ,ecological imbalance are becoming more more serious, people gradually realize that production way purely based on increasing economy is jeopardizing environment and hope to sustainablly develop the whole society in an all-round way through promoting green environmental protection and pushing transfer of economy growth mode,consequently,green environmental protection also gradually becomes an important premise for economic and social activities. Because the environmental problems and its direct or indirect consequences have impacted the running of the whole social system, including the financial development cored on economic system, financial revolution themed as"green finance" has become the historical trend,and green credit policy comes into existence as the situation requires.Environmental Protection Ministry, People's Bank and The China Banking Regulatory Commission jointly promulgagted a new policy" green credit" in July,2007 in order to limit the growth of high energy-consumption and high pollution enterprises. Green credit indicates that banks or other financial institutions provide credit support and favorable low rate for the environmental friendly enterprises or institutions and limit the amount of credit with high rate for those new pollution projects and circulating fund of enterprises.it is China's unique environmental policy which needs the cooperation between many departments. Green credit policy, as one of the environmental economy policies, solves many environmental problems . However, China still lacks of law or regulations to support and promote its implementation. And China's People's Bank Law, Law of the peoples Republic of china on Regulation of and supervision over the Banking, Commercial Bank laws emphasis on economic growth but neglect environmental protection., and the main method to protect environment is through administrative measures,thus, environmental protection is far behind economic growth. Meanwhile, Although both Energy Conservation Law of the People's Republic of China implemented from April 1st,2008 and The Circular Economy Promotion Law of the People's Republic of China issued on August 29th,2008 have provisions concerning green credit, however, the provisions are too generous and lack of operation, which makes the implementation of green credit policy display voluntary character and the implementation result is not ideal. Because lawful and operational policy has enough authority and the rules are unanimous, transparent. consequently, "green credit" is favorable to be implemented by all the banks. This paper is divided into six parts: part one is mainly about the concept, implementation situation and necessity for legislations of green credit policy. Part two is talking about the reasons which impact the implementation of green credit policy from the point of system, policy and law and skills.Part three is introducing the implementation of this policy of international experience to us. Part four is introducing the cases of China's green credit policy and their useful experience to us. Part five is giving advices on legislation on green credit poliy respectively from the creditor, enterprise, government and the public and non-governmental organizations. Part six is the conclusion of the paper.