Research On Forestry Green Credit Standards Developing In China

With the development of social economy and the increasing wealth of material production,people's life quality is constantly improving.Meanwhile,environmental pollution and resource depletion have brought challenges to sustainable development of society.As an investment and financing activity that can generate environmental benefits and support sustainable economic development,green finance was proposed in late 20 th century.With strong support and promotion of international organizations and international financial institutions,it has become an industry standard universally followed by the international financial industry.Chinese government will also develop the green financial system as an important guideline for China's economic restructuring.Forestry plays the main role in green economy development,and the support of green finance is indispensablethe for forestry.environmental-friendly development.In China,a series of green credit projects implementation,such as the world bank,has promoted the development of forestry in China.But at present,forestry green credit,as an important measure of forestry green finance,has not been supported by most domestic financial institutions in China.Most of them still have issues such as weak legal system,inconsistent policy standard and insufficient external supervision.In this context,this paper studied the green credit policy of forestry in China by comparative analysis,SWOT analysis and case analysis.This paper described the following aspects: the connotation and policy situation of forestry green credit,SWOT feasibility analysis of forestry green credit in China,the advantages and disadvantages of forestry green credit policy and the implementation path of China forestry green credit policy.On the basis of comparing domestic and foreign forestry green credit policies,a standard for the implementation of green credit in China was put forward.In order to improve China's forestry green credit policy system,this paper put forward corresponding policy suggestions.The key finding are as follows:(1)Based on the analysis of current situation of green finance and green credit in China and abroad,it analyzed and defines the theoretical basis and connotation of green finance and forestry green credit via drawing on relevant theories from abroad.Forestry green credit refered to,in the development of forestry,based on the principle of forestry resources environmental protection,sustainable development pronmotion and resources recycling,for those credit that conforming to environmental social monitoring standards,pollution control effect and ecological protection principle,governmet could provide corresponding financial support and preferential activities.Compared with conventional forestry credit,the core of forestry green credit was to integrate the requirements of ecological environment protection into the credit accounting and decision-making of the financial industry.(2)Based on the SWOT analysis,the paper put forward the feasibility and strategic choice of China's forestry green credit policy mechanismdevelopment.The paper pointed out that the advantages of China's forestry green credit policy were: the continuous development of financial market,national policy still attached great importance to it,our international experience and technology and the advantages of forestry industry itself.The disadvantages were that China had not yet established a comprehensive green credit policy system,a unified and effective policy standard,an effective external supervision mechanism,and a green credit incentive mechanism for forestry.The opportunity was about big trend of green finance development in the international community,transformation of bank credit structure and increasing importance of ecological protection.The challenge was that the forestry industry had a higher risk,the financial institution's economic target and social responsibility contradiction,the backward forestry insurance development.Based on the analysis of internal and external environment of its development,this paper put forward that the strategic choice of forestry green credit,which should select the disadvantage-opportunity(WO)strategic combination.So as to improve the legal system of forestry green credit policy,establish a unified green credit standard of forestry,and set up external supervision mechanism and incentive mechanism.(3)Made comparative study on green credit policies of major financial institutions.This paper analyzed its green credit policy,implementation and related requirements of forestry green credit policy,and put forward the standard and implementation path of China's forestry green credit policy.Proposed eight performance criteria included: environmental and social impact assessment,labor rights,local community rights,protection of cultural heritage,environmental protection,biodiversity conservation and sustainable resource management,forest land ownership and stakeholders participation and consultation mechanism.Policy implementation approaches included: establishing scientific grading methods,introducing third-party cooperation mechanisms,increasing personnel training and improving the green credit policy system.(4)The case study of the world bank forestry comprehensive development project showed that the implementation of green credit policy was feasible in China,whihc was conducive to the construction of soil and water conservation,ecological forest restoration,multi-function plantation and local residents rights protection.It also guaranteed the rights of local residents,and had obtained good social and economic benefits,which was worthy of reference from other Banks in China..(5)Based on the above research,this paper discussed the policy Suggestions for the development of forestry green credit in China.And the following measures should be implemented: standardize the policy standard system,establish the forestry credit incentive mechanism,improve forestry credit supervision system,strengthen the development and innovation of forestry credit products,and avoid the risk of forestry industry,etc.