Discussions On The Construction Of Green Credit Legal System In China

The developing speed of social productive forces is increased rapidly since the20th century, especially for the industry. But what has also happened constantly is the pollution of natural environment and reduction of natural resource, even developed into a quite dangerous situation. Since China’s reform and opening-up, although the economic development has made tremendous achievements, environmental problems are increasingly prominent. In order to improve the present status of severely destroyed environment and maintain sustainable economic development, it is necessary to give bank credit, which as a financial leverage, to restrict the development of the enterprises, such as with high-energy-consumption,high-pollution,high-water-consumption, or overcapacity, at the same time, to guide the funds flowing to the environment-friendly enterprises.Chinese green credit is based on the Equator Principles, which has been accepted by most banks of the world. The Equator Principles has become one of the criteria for the bank project financing referred to environmental issues since2002. But in China, only the Industrial Bank undertakes to fulfill the Equator Principles, as for many other domestic banks, the principle is unbinding. Therefore, it is necessary to legalize the green credit in China, as to guarantee the implementation of it practically and effectively. The purpose of this paper is to study the present situation of the concrete practice of the green credit in China, with the analysis on the value of the legal system of green credit and the necessity of legislation of it. As a result, the author finds the existing relevant problems domestically and points out that China desperately needs the kind of laws to solve these problems mentioned. And then, the author provides some suggestions for the legalization of green credit in China, referring to some legislative models from the foreign developed countries and some green credit practices in Equatorial Bank. At last, this paper gives a number of advisements applied to Chinese situation, to legalize the green credit. It is served only as a reference for the development of Chinese green credit.Except the Introduction and Conclusion, This paper is divided into four parts, and summarized as follows:The first part analyzes the practice of Chinese green credit and some existing problems of it. At first, it introduces the background of proposing of the green credit, and points out the severe situation of Chinese current environment. Second, it presents some related legislations on green credit, including three regulations of each departments, a Circular Economy Promotion Law and the execution status of green credit in Industrial Bank, Industrial and Commercial Bank of China, China Development Bank, with a few cases. At the last of this part, by the analysis above, the author summarizes a number of main problems, which referred from Social awareness to the credit system itself, about the execution process of green credit presently in China.The second part analyzes the value of the construction, which consists of the following four concretely, of green credit:1, the value of order;2. the value of justice;3. the value of fair;4. the value of efficiency. The value of law is the subsystem of the social values, embodying the spirit of the law. Then it points out five necessities of the legal system construction of green credit.In the third part, it introduces the legislation in several countries with advanced legal system of green credit, such as United States, Japan, England and Canada. Secondly, the author makes an empirical analysis on the green credit practice of some famous Equatorial Banks, including three commercial banks and one policy bank from Germany. At last, it provides some suggestions for the legalization of green credit in China, referring to the experience of the developed countries. For example, the integrated legislative model conforms to common international practices more.As to the last part of this paper, it mainly makes a summary of above, and puts forward some ideas for constructing the legal system of Chinese green credit. In my point of view, we should establish firstly the basic principles of the legal system of green credit, according to the practical situation of China, and choose the integrated legislation style. Secondly, we perfect the law on our green credit of bank, because the bank, as a key link of the operation of green credit system, that should be strictly regulated by law. The third, the laws related to the supervision institute of green credit arranged by government should be perfected with specific criteria. The fourth is that, it is allowed the social supervision to involve in the process of green credit system, such as NGOs, not belong to any side of government、bank or enterprise. Finally, it is to improve the legal system comprehensively in many ways, such as establishing the classification standards for different loan projects and industries with impact in varying degrees on environment and society. The author hopes that the legal system of green credit could be established one day, by establishing and improving the series of laws and regulations before, to guarantee the long-term development of the green credit.