The Study On Legal Issues Of The Green Microfinance In China

In the context of global climate change, poverty reduction and environmental protection are no longer separate, microfinance institutions are looking for ways to reduce poverty, at the same time it should also focus on environmental issues. In recent years, the microfinance sector is developing rapidly in China, small loans is climbing, but it has brought a new issue, economic benefits microfinance brings might be offset by the ecological environment damage losses their customers through micro loans for economic activities. At present, Some microfinance institutions comply with their double bottom line (financial and social bottom line) at the same time, start devoting oneself to the third line-environmental bottom line,green micro-credit is financial service innovation that micro-credit institutions are seeking balance between poverty reduction and environmental protection. Promoting green microfinance is necessary in the process of harmonious development of China’s economic, social and ecological environment.The paper draws on green microfinance experience in relevant nation, and in the legal perspective, do theoretical and practical studies and applied economics, environmental science.Firstly, this thesis sorts out theoretical basis of the green microfinance. The paper outlined the concept of microfinance and functions, and on the basis of this, defined connotation in the point of microfinance relationship with the environment. In theory, this paper uses a combination of law, economics, in law aspects it uses the theory of environmental rights, financial rights theory and the theory of environmental responsibility; in economic aspects it uses environmental externalities theory, credit rationing theory and the theory of sustainable development. This paper systematically analyses the small green credit and provides a theoretical basis for the study of the development of our green microfinance.Secondly, through the investigation and the status quo on the history of the development of China’s green microfinance considerations, it reveals the problem and explores its root causes. The problems of green microfinance in China mainly include: green microfinance issued subject is difficult to determine, environmental performance evaluation system is lack, property rights are unclear, governance structure is adequate, green microfinance regulatory body is not clear, there are legal difficulties in the interest rate market. The roots of the problem in our green microfinance mainly involve:our green microfinance development safeguards law system is lack, the government-backed green microfinance development is not enough, our microfinance institutions is no "green consciousness" and green micro-credit financing channels are narrow.Thirdly, this paper examines the relevant national legal system of green microfinance. By examining the developed countries such as the United States, Italy and developing countries such as India, Bangladesh and Sri Lanka green microfinance development status, deeply analyze green microfinance system in different countries, and provide some experience and reference for China’s development of green microfinance experience, the revelation is following:integrating environmental education resources, providing support on green technology, establishing environmental performance evaluation system, focusing on international green cooperation and exchanges, and strengthening the government’s policy guidance and tilt efforts, broadening green microfinance financing channels, sounding green microfinance institutions regulatory regime.Finally, in our green microfinance legal issues solutions, first clear concepts and principles in the development of green microfinance, and provide overall direction for the whole China’s development of green microfinance; secondly, based on the theoretical basis and practical basis, perfect the legal system of our green microfinance, specific measures include:claritying the principal legal systems of green microfinance, consummating legal system of investment and financing of green microfinance, building green microfinance risk prevention system, improving the green microfinance regulatory legal system; finally, it proposes measures to protect the green microfinance legal system in China with the combination of actual, that is, perfect government functions in the process of development of green microfinance, build green microfinance risk control system, and establish green microfinance incentive mechanism.Epilogue part clarifies the basic ideas of the full text, and try to have a deep thinking about the future. Then makes a summary of the innovation of the article and the insufficient places.In this thesis, by introducing green microfinance, in order arouse the interest and thinking of China’s financial industry and the relevant government departments on green microfinance, and provide the reference of legislation and law enforcement for development of green microfinance.