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credit given by international agencies (JICA, KFW, AFD), SIDBI is able 3.2
to grant loans with relatively low interest rates compared to those of
commercial banks. By October 2012, SIDBI had provided assistance
worth approximately INR 3,000 crore (approx. USD 500 million) to
around 6,000 MSME units for green and energy-efficient technologies
(MMR Online Foundry Review, 2012).
The Infrastructure Development Finance Company (IDFC) is
the only Indian bank that has joined the Equator Principles—an
internationally accepted credit risk management framework for
determining, assessing, and managing environmental and social risks
in project finance transactions.
The issuance of the Green Credit Guidelines by China’s banking
regulatory commission in February 2012 marked a milestone in
China’s commitment to sustainable banking practices and in helping
address environmental challenges. The guidelines promote the
implementation of Green Credit policies to a new level. It is a kind of
financial innovation for achieving sustainability objectives.
These guidelines have been formed to encourage banking and
financial institutions to promote green credit, effectively fend off
environmental and social risks, boost the transformation of the
economic growth mode and the adjustment of the economic structure,
and hence, better serve the real economy. Thus, they encourage
Chinese banks to lend more to energy-efficient and environmentally
sustainable companies and less to polluting and high energy-
consuming enterprises. The guidelines show the banks how to integrate
sustainability thinking into their lending cycle and will be applied to
all lending—both domestic and overseas.
The Chinese Green Credit Guidelines require the board of directors
or the supervisory board of banking institutions to build and promote
green credit concepts concerning energy saving, environmental
protection and sustainable development; be committed to giving play
to the functions of facilitating holistic, coordinated and sustainable
economic and social development; and establish a sustainable
development model that will benefit the society at the same time
(Article 6, Green Credit Guidelines).
The Reserve Bank of India (RBI) which is India’s central banking
institution controls the monetary policy for the country. The institution
is responsible for regulating and supervising the financial system and
prescribes broad parameters for banking operations within which the
country’s banking and financial system functions.
Chapter 2 Innovative Financing for Low Carbon Development 253
to grant loans with relatively low interest rates compared to those of
commercial banks. By October 2012, SIDBI had provided assistance
worth approximately INR 3,000 crore (approx. USD 500 million) to
around 6,000 MSME units for green and energy-efficient technologies
(MMR Online Foundry Review, 2012).
The Infrastructure Development Finance Company (IDFC) is
the only Indian bank that has joined the Equator Principles—an
internationally accepted credit risk management framework for
determining, assessing, and managing environmental and social risks
in project finance transactions.
The issuance of the Green Credit Guidelines by China’s banking
regulatory commission in February 2012 marked a milestone in
China’s commitment to sustainable banking practices and in helping
address environmental challenges. The guidelines promote the
implementation of Green Credit policies to a new level. It is a kind of
financial innovation for achieving sustainability objectives.
These guidelines have been formed to encourage banking and
financial institutions to promote green credit, effectively fend off
environmental and social risks, boost the transformation of the
economic growth mode and the adjustment of the economic structure,
and hence, better serve the real economy. Thus, they encourage
Chinese banks to lend more to energy-efficient and environmentally
sustainable companies and less to polluting and high energy-
consuming enterprises. The guidelines show the banks how to integrate
sustainability thinking into their lending cycle and will be applied to
all lending—both domestic and overseas.
The Chinese Green Credit Guidelines require the board of directors
or the supervisory board of banking institutions to build and promote
green credit concepts concerning energy saving, environmental
protection and sustainable development; be committed to giving play
to the functions of facilitating holistic, coordinated and sustainable
economic and social development; and establish a sustainable
development model that will benefit the society at the same time
(Article 6, Green Credit Guidelines).
The Reserve Bank of India (RBI) which is India’s central banking
institution controls the monetary policy for the country. The institution
is responsible for regulating and supervising the financial system and
prescribes broad parameters for banking operations within which the
country’s banking and financial system functions.
Chapter 2 Innovative Financing for Low Carbon Development 253
