Above image: Major Chinese banks sign a pledge to put green credit at the heart of their business.
China’s leading banks pledged to put green credit at the heart of their business in an unprecedented top level meeting on green financing, yet another sign of how serious today’s environmental threats are now being taken in China.
The ‘Joint Commitment to Green Credit by the Chinese Banking Industry’ was signed on 4 November by presidents of the Industrial and Commercial Bank of China (ICBC), the China Development Bank (CDB), the Bank of China (BOC), the Construction Bank of China, and 25 other major Chinese banks. The signatories lead some of the biggest banks in the world and their banks account for 70-80 percent of China’s total bank lending.
IIP’s Senior Advisor, Bob Taylor, said the pledge underscored the country’s growing commitment to dealing with complex environmental issues.
“This is an unprecedented move by major Chinese banks to promote green lending on a massive scale. I don’t think there has ever been as much financial capital represented by top bank management in one room as at the signing of this green credit pledge,” he said.
Patrick d’Addario, IIP Senior Advisor, Financial Products, noted that “by incorporating green credit into standard banking operations, Chinese banks stand to significantly increase revenues while improving their customers’ profitability and competitiveness.”
In their joint commitment, the banks promised to embody green credit in every aspect of banking operations; accelerate the innovation of green credit processes, products and services; and be firm advocates for energy-saving and emission-reducing practices in China. In his closing remarks, Vice Commissioner Wang of the Chinese Banking Regulatory Commission (CBRC) called upon the banks to fulfill their commitments for the good of the country. He also noted that the media had an obligation to monitor the progress achieved by the banks in their promises to expand support for energy efficiency, clean energy and environmental protection investment.
IIP attended the hallmark event at the invitation of CBRC, representatives of which thanked IIP for its continuing work to provide them with information on international financial best practices for energy efficiency.
For more information about what green credit in banks involves, please see our FAQs.