The Guangxi Environment Department has signed an agreement with Guangxi Beibu Gulf Bank Company on green credit services.
According to the agreement, the parties will jointly establish a work mechanism and set up a work team to promote green credit service in Guangxi. The bank will only support loans to companies whose projects have passed an environmental review by the local environment department. Meanwhile, the bank will not offer additional loans to companies or business undertakings that violate the environmental rules and will gradually recall loans from those enterprises that have violated the environmental rules and failed to correct the violation within a given deadline.
In addition, the bank will arrange at least CNY2 billion each year to support the development of environmentally-friendly companies certified by GED.
Green credit is an important economic means jointly adopted by environmental departments and the banking industry to prevent environmental violations among enterprises and to promote energy conservation and emission reductions as well as avoiding financial risks.