Page 148 - Low Carbon Development in China and India
P. 148
8.93 per cent of total loans. From the above data, we can see that 2.2
although loans in the field of energy saving and environmental
protection increase rapidly, compared to the traditional industries,
loans for energy saving and environmental protection projects and low
carbon industries still account for a small proportion.
However, due to non-uniform definition and statistics, total green
credit (or energy saving and environmental protection loans) still
has no public statistics. Although the Social Responsibility Report of
China Banking Industry released by the China Banking Association
disclosed incomplete statistics of credit or credit balance for energy
saving and environmental protection in recent years, yet the disclosed
data from 2006 to 2009 and that from 2010 to 2011 are in different
names (transformed from ‘credit volume’ to ‘credit balance’), resulting
in incomparability of data from different years.
There have been some innovative products for green credit to
provide financing for urban low carbon development projects.
Fixed asset loans for energy saving and emission reduction refer to
loans granted by the banks for investment in fixed assets of energy-
saving and emission reduction projects, including energy efficiency
improvement projects, new energy and renewable energy projects,
sewage treatment and water treatment projects, desulfurization and
de-nitrification projects, solid waste disposal project, energy-saving
and emission reduction equipment production projects (Box 2.6).
These loans serve clear purposes, belong to the field of energy saving
and emission reduction, and conform to the ‘Green Credit Guidelines’
of the China Banking Regulatory Commission.
Box 2.6: Fixed Assets Loans for Energy Saving and Emission
Reduction by Industrial Bank
The Industrial Bank has summarized the risks that all kinds of fixed assets loan projects
for energy saving and emission reduction should focus on. For professional service
projects on energy conservation and emission reduction, banks should focus on whether
the technical maturity, completeness of service contracts for energy conservation and
emission reduction, and the total project cost and benefit allocation proportion are
in line with market conditions. For resource recycling projects, banks should focus
on market risks in terms of raw materials supply of wastes, technical maturity, and
commercial operation conditions for comprehensive utilization of resources, product
quality and distribution channels, etc. For exclusive production projects for energy
saving and environmental protection, banks should focus on avoiding blind investment
due to operations according to market concept, which leads to the risk of overcapacity.
Chapter 2 Innovative Financing for Low Carbon Development 113
although loans in the field of energy saving and environmental
protection increase rapidly, compared to the traditional industries,
loans for energy saving and environmental protection projects and low
carbon industries still account for a small proportion.
However, due to non-uniform definition and statistics, total green
credit (or energy saving and environmental protection loans) still
has no public statistics. Although the Social Responsibility Report of
China Banking Industry released by the China Banking Association
disclosed incomplete statistics of credit or credit balance for energy
saving and environmental protection in recent years, yet the disclosed
data from 2006 to 2009 and that from 2010 to 2011 are in different
names (transformed from ‘credit volume’ to ‘credit balance’), resulting
in incomparability of data from different years.
There have been some innovative products for green credit to
provide financing for urban low carbon development projects.
Fixed asset loans for energy saving and emission reduction refer to
loans granted by the banks for investment in fixed assets of energy-
saving and emission reduction projects, including energy efficiency
improvement projects, new energy and renewable energy projects,
sewage treatment and water treatment projects, desulfurization and
de-nitrification projects, solid waste disposal project, energy-saving
and emission reduction equipment production projects (Box 2.6).
These loans serve clear purposes, belong to the field of energy saving
and emission reduction, and conform to the ‘Green Credit Guidelines’
of the China Banking Regulatory Commission.
Box 2.6: Fixed Assets Loans for Energy Saving and Emission
Reduction by Industrial Bank
The Industrial Bank has summarized the risks that all kinds of fixed assets loan projects
for energy saving and emission reduction should focus on. For professional service
projects on energy conservation and emission reduction, banks should focus on whether
the technical maturity, completeness of service contracts for energy conservation and
emission reduction, and the total project cost and benefit allocation proportion are
in line with market conditions. For resource recycling projects, banks should focus
on market risks in terms of raw materials supply of wastes, technical maturity, and
commercial operation conditions for comprehensive utilization of resources, product
quality and distribution channels, etc. For exclusive production projects for energy
saving and environmental protection, banks should focus on avoiding blind investment
due to operations according to market concept, which leads to the risk of overcapacity.
Chapter 2 Innovative Financing for Low Carbon Development 113
