Research On The Development Of Green Credit In China

In the green transformation of economic structure of our country, financial leverage playedan important role. Since the green credit policy published, China still strengthen the policyefforts.At the same time, all the policy banks, commercial banks also embed the green concept incredit flows.Through the research,we can found that the investment of energy saving andenvironmental protection is growing, at the same time China’s carbon dioxide emissions per unitof GDP was also decreased year by year, highlighting the green credit effect.The main content ofthis paper includes theoretical analysis of green credit,analysis of green credit practice and greencredit development strategy research.This paper first analyses the green credit environment economics theory, considering that"green credit" is a specific application of the Pigou tax on financial markets,it can compensatethe environmental cost of external economy,avoiding the limitation of directing governmentcontrol;In the analysis of the theory of corporate social responsibility, this paper argues that thecommercial bank undertake the economic responsibility, social responsibility and environmentalresponsibility.In the current situation of resource and environment of our country,"green credit"has become an important means for the banking institutions to practice environmentalresponsibility.In the green credit practice status analysis of China’s banking institutions,this paper focuseson the National Development Bank, the Export Import Bank of Chinese, AgriculturalDevelopment Bank of China, ICBC, agricultural bank, construction bank, Bank ofcommunications, China Merchants Bank.Through the comparison of the green credit practice ofthree policy banks,we can found that although the implementation of "one vote veto in the lineof" apply to all the green credit project approval,but only national development bankperformance more prominent in the green credit policy introduction, credit support and projectdelivery,the three policy banks overall green credit process still slow.For the analysis of the fivelarge commercial banks green credit practices in this paper,we can found that all them focus onthe strict control of the "two high and one left," the support for energy-saving and environmentalprotection industry project financing, and the green credit information disclosure, but the green credit policy still lacking of maneuverability, the green credit products and services innovation isrelatively backward, and the construction of green credit institution is not perfect.As the Industrial Bank is the first equator bank of china,its green credit practice has beenwalking in the forefront of China’s commercial banks.Therefore we analysed the IndustrialBank’s green credit products and services innovation,improvement and management ofenvironmental and social risk management system construction,the green credit policy process aswell as the equator principles practice. And we summarized the advanced experience of theIndustrial Bank’s green credit, providing guidance for other commercial banks of China’s greencredit.The main work of this paper is put forward policy suggestions to perfect China’s greencredit products and operating mechanism.Through the analysis of the current situation of China’sgreen credit products and service development,this paper puts forward its own ideas on theinnovation of green credit product development philosophy, development mechanism andprocess,and then put forward four kinds of products from green production and greenconsumption area, including energy saving equipment portfolio loans,CDM projectfinancing,low carbon and energy saving of automobile consumption credit and green creditcard.In the perfecting operation mechanism of green credit,we must set up the green creditinformation sharing mechanism, strict green credit access, strengthen risk review of green creditoperation and green credit dynamic exit;To improve the green credit policy,commercial banksneed to cooperate with local government,and continuously improve the construction of the legalsystem of green credit,commercial banks should integrate "green credit","green credit" into thecredit culture, but also to strengthen the commercial bank’s Green Credit Incentive,at last thispaper suggests that commercial banks should adopt the equator principles, to strengtheninternational cooperation in green credit.