Study On The Green Credit Legislation In China

In2013, word “haze” was spread along the streets and lanes and extensiveattentions were paid to PM2.5data, which highlighted China’s environmental issue, amajor issue affecting the livelihood in China since the conflicts between economicdevelopment and environmental protection were greatly intensified along with rapiddevelopment of China’s economy, accelerated pace of China’s industrialization andurbanization and increased energy consumption. Although as one of main social bodies,enterprises shall bear inescapable responsibility for environmental protection, somehighly polluting and high energy-consumption enterprises expand blindly driven byinterest. A hot topic occurs, that is, how to stimulate the initiative of enterprises andother main market bodies to actively assume their responsibilities for environmentalprotection. Green Credit is a policy to regulate and control environmental protectionthrough regulation of flow of funds by use of financial leverage. It requires commercialbanks, policy banks and other financial institutions to extend credit in accordance withthe national environmental policy and industrial policy, not only supporting andproviding preferential interest rates for enterprises or institutions engaged in researchingand developing and manufacturing pollution control apparatus, protecting anddeveloping environment and utilizing new energy sources as well as those greenmanufacturing and eco-industrial enterprises and institutions, but also setting loan limitfor and applying punitive interest rate to loans and liquidity loans to be invested in highenergy-consumption and high-pollution enterprises. Green credit is expected to by suchregulation on flow of credit funds contain blind expansion of high energy-consumptionand high-pollution enterprises and industries. Against the background that China is stillat the very beginning of green credit and relevant theoretical studies and institutionalarrangements are still lagged behind and in order to improve the China’s green creditsystems, promote legalization of green credit, and to provide applicable and practicalrules and regulations for effective fulfillment of social responsibilities by commercialbanks and other financial institutions, this study will make explanations in five parts:The first part, introduction, outlines China’s green credit status quo and researchsignificance and describes the study object, study purpose and research methods.The second part, Overview of green credit, first gives the connotation, nature andfeatures of green credit, and then discusses the necessity and feasibility of green credit legislation. Highlight the advanced of the green credit.The third part is the theory of the green credit legislation. First, it’s introduce thebasic theory, with the introduction of the global-influential equator principle and itssuccessful applications, in-depth analysis demonstrated the theoretical basis for greencredit. While introduces the theories of corporate social responsibility and environmentrisk management, thus clarifying the advantages and inevitable trend of theimplementation of green credit system. Then analysis the order、efficiency and fairvalue of the green credit legal system, a clear advantage and the inevitable trend ofgreen credit system are defined.The fourth part, the current situation of green credit legislation. This partintroduced the current situation of China’s green credit legislation, analyze the problemsof green credit legislation in china. This will pave below to give suggestion of greencredit legislation.The fifth part, suggestions on china’s green credit, answers the questions existingin China’s green credit system one by one and puts forward legislative proposals,creating a relatively complete system for China’s legislation on green credit andtherefore, puts forward the legislation mode of China’s green credit legislation.The sixth part, conclusion, concludes the whole paper with a prospect of theimplementation of the legal regulations on green credit in accordance with and underthe guidance of law, n hope of China’s social and economic development andenvironment protection going hand in hand and realizing the vision of developing Chinainto a resource-saving and ecofriendly society.