Project Newsletter Vol3 Apr Jun10 English
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Project Newsletter Vol3 Apr Jun10 English Document Transcript

  • 1. April-June 2010 Project Updates  Discussion Workshops on National Green Credit Draft Guideline Held in Beijing An internal discussion workshop was held on 13 May in Beijing to discuss the initial draft of national guideline submitted in April. The purpose of the discussion was to finalize the basic qualitative criteria and quantitative standards for commercial banks to review loan applications from steel and iron sector. On 25 May, a workshop reviewing revised guideline draft was held at PRCEE. Mr. Yuan Qingdan, the Deputy Director-General chaired the meeting. Ms. Li Xiaowen, Deputy Director from the Statistics Department of CBRC attended the meeting and provided feedbacks. Other attendants included experts from China Industrial and Economic Federation, China Steel and Iron Association and China Academy of Social Sciences. ICBC, Industrial Bank, China Construction Bank and China EXIM Bank sent representatives to participate in the discussion. Deputy Director-General of PRCEE, Mr. YUAN, Qingdan (2nd to the left) was speaking at the review workshop on 25 May. Ms. Li Xiaowen (1st to the left) from CBRC was present at the meeting. The interaction between the industry and banks generated productive outputs and good thinking on methodology. Bank representatives and industry experts were focusing on how to make the guideline easily understood and used by bankers by setting measurable and simple indicators in sound and logic -1-
  • 2. categories. Six banks submitted their initial feedbacks in writing on the first draft.  Mr. Su Yi (3rd in The second draft was submitted on 12 June based on the feedbacks collected the left), an expert from the workshop. SynTao is coordinating with stakeholders for further inputs from Environment and comments. This draft is expected to be finalized in early August. Engineering Evaluation Centre, Ministry of Environmental Protection is presenting the draft guideline. Dr. Guo Peiyuan (second in the left), General Manager of SynTao was present at the workshop on 25th May.  SynTao Facilitates UNEP FI’s Visit to China Head of UNEP Finance Initiative, Mr. Paul Clements Hunt visited China in early June. During his visit, SynTao facilitated his meetings with PRCEE of For more Ministry of Environmental Protection, some financial institutions and leading information about Chinese media. On 2nd June, Mr. Hunt was invited as a guest speaker at the high the lecture, please profile Sohu Green Channel “Green Competitiveness Lecture” Broadcast themed click here (Chinese in “Can Green Finance Bring More Profit to the Financial Industry?” It was well only) attended by Chinese bank representatives and officials from the Ministry of Environmental Protection. SynTao General Manager, Dr. Guo Peiyuan was also speaking at the broadcasting lecture. Mr. Hunt later received exclusive interview by the leading national newspaper, See interview Nanfang Weekly, claiming that green finance would be very promising in China. “Green Finance is a He also indicated that UNEP FI was planning to set up a representative office in good business” by China by this year and would organize the first Annual Meeting in China in 2013. Nanfang Weekly. SynTao strengthened cooperative contacts with UNEP FI after the first foreign experts’ training to Chinese bankers in late January. Mr. Robert Tacon, former UNEP FI Chair and a foreign trainer under this project, helped follow up with the Secretariat in Geneva. -2-
  • 3.  Survey Shows Local Commercial Bank Interested in Practical and Simple Green Credit Guideline Sichuan project team led by Sichuan Environmental Protection Department submitted a report after surveying eight local commercial banks in early April. With the support from Sichuan CBRC, the team surveyed both state banks and privately owned banks. Almost all participants explicitly expressed interests in getting involved in the guideline development and came up with expectations of what the guideline should look like and be used. “Be practical and keeping it straightforward”, “more scientific and simple quantitative requirements”, “explanation of identifying environmental risks and timely supply of the business environmental performance records” are most concerned issues. The team also visited the biggest steel and iron producer in the province and the company suggested the guideline reflect unique features of the industry in the province, include mining industry’s environmental performance in the guideline, and highlight the efficiency of the comprehensive use of the unique iron ore resources.  Consultation Workshop on Implementation of Green Credit Policy Held in Chengdu A consultation workshop was organized by Sichuan Environmental Protection Department (EPD) at the conference centre of Sichuan CBRC on 28 April. Representatives from eight commercial banks and scholars from Sichuan Academy of Environmental Sciences attended the meeting. The purpose of the event was to further consult banking sector’s implementation progress of the Green Credit Policy. In total, as of March 2010, these eight major banks lent to 32 steel and iron enterprises in Sichuan with total loan balance of 15.9 billion CNY (around 1.59 billion GBP). The non-performing loan rate was zero by then seems to demonstrate sound risk control capacity of these banks. However, banks expressed concerns on emerging new environmental risks due to shortage of industrial professionals to help identify and manage potential risks. How much the guideline can regulate the whole value chain of the industry in Sichuan was one of the key debating points. -3-
  • 4.  Mr. Wang Xing (3rd in the right), Division Director of Statistics Department of Sichuan CBRC Chaired the meeting. Ms. Lv Xiaotong (1st to right), from Sichuan Environmental Policy Research Institute leads the research.  SynTao Invited to SPF Implementer Roundtable in Beijing SynTao was invited to participate in a networking event of Strategic Programme Fund (SPF) held at the British Embassy on 1 June, 2010. The Roundtable sponsored by SPF Low Carbon High Growth Programme invited current implementers across China to meet SPF programme officers from China, Brazil, India and the Head Office in London. The purpose of the event was to help these SPF Programme officers to better understand the key policy areas and drivers for shifts in policy and the role of project interventions (including SPF), issues and challenges in China. Role of provincial projects was also discussed. SynTao General Manager, Dr. Guo Peiyuan shared views of the SPF Low Carbon High Growth Programme from a project implementer’s perspective. Sustainable Financing News In China  New Financing and Investment Policy Promulgated to Support the Development of China’s Circular Economy NDRC, PBOC, CBRC and CSRC jointly promulgated “the opinion of new financing and investment policies and measures to support the development of For more details, circular economy” on 28th April. This is the first macro-guidance policy on please visit Gov.cn promoting the development of circular economy since the Circular Economy (Chinese only) Promotion Law was in effect in August 2008. To enhance the efficiency for financial institutions’ operation in supporting circular economy, the document outlines clear project scope for banks to make lending decisions. -4-
  • 5.  Premier Wen Urges to Eliminate Backward Production Capacity In the national video conference by the State Council on 5th May, Premier Wen For more details, please visit here Jiabao emphasized to prioritize energy saving and emission reduction work to (Chinese only). achieve the targets of the Eleventh Five-Year Programme. According to the speech, the state will eliminate backward production capacity of 25 million tons of iron and 6 million tons of steel.  China Banking Sector Achieve Good Results in Implementing Green Credit Policy, says China Banking Sector Annual CSR Report 2009 China Banking Association released China Banking Sector CSR Report 2009 For more details, on 10th May. It outlines the achievements of the sector in implementing the please visit here. Green Credit Policy in 2009: exiting loans from 2348 clients which are operating in “lianggao” industries, increased by 823 compared to the year 2008. Lending to energy saving projects in the banking sector reaches 856 billion CNY (about 85.6 billion GBP) in 2009, accounting for 8.93% of the total loan portfolio and benefiting 4099 enterprises in the sector.  PBOC and CBRC Require Financial Sector to Better Support Energy Saving and Emission Control Sectors On 28 May, PBOC and CBRC jointly issued “Opinions of the People's Bank of For more details, China and the China Banking Regulatory Commission on Providing the Financial please visit here Services to Further Support the Energy Conservation and Emission Reduction (Chinese only) and to Eliminate the Unqualified Production Capacities”. This is a follow up of the State Council meeting on 5th May.  New loans to High-polluting Industries to be Banned At a press conference held on 21st June, CBRC ordered financial institutions to For more details, stop extending new loans to projects already under construction that run foul of please view CRI. the country's policies of eliminating outdated capacities or saving energy and cutting emissions. CBRC asked financial institutions to inspect their lending to energy consuming and high-polluting industries or industries with backward production capacities. The inspection results should be submitted to the CBRC by the end of June. -5-
  • 6.  Chinese Banking Industry Environmental Record (2009 NGO edition) Launched Nine Native Environmental NGOs in China jointly released their independent research report on China’s 14 public-listed commercial banks’ environmental For more details, performance in May. The study referred to international NGOs’ indicators of please visit here. banks’ environmental and social performance and localized them to suit China’s circumstances. Altogether, there are eight indicators are used in this study. SynTao is the technical advisor to this study.  ICBC: Lending to Ethiopia Gibe 3 Dam still “Under Review” June 26, the ICBC's Chief Risk Officer, Wei Guoxiong, accepted an exclusive interview with China Business News, and revealed that the ICBC "has yet to For more details, agree and is reviewing" the loan for the Gibe 3 Dam project. "As a global bank, please click here for those projects affecting the environment, whether domestically or abroad, ICBC will not support them," Mr. Wei expressed clearly the bank's attitude. Gibe 3 dam is located in southern Ethiopia's Omo River. The project started in 2008, with a total investment of 16 billion birr (about $1.75 billion). The total generation capacity is 1,870 MW. It is expected to be completed in 7 years. It comprises a total of ten generating units, and is currently the largest hydropower project in Ethiopia. Sustainable Financing News In UK  Government Commission Urges Rapid Setting up of Green Investment Bank The Green Investment Bank Commission warned that the scale of the looming crisis means that the government needs to rapidly set up a bank to fund Britain's For more details, low-carbon future, ideally within the next six months. The new coalition please view government has estimated that building the new low-carbon infrastructure that the Guardian UK needs will cost £550bn between now and 2020. The total bill over the next twenty years could hit £1tn. The Green Investment Bank was unveiled by the Labor Government in the Budget 2010 in March, which proposed for a bank size of 2 billion pounds. It was designed to help finance projects such as railways, offshore wind power generation and eco-friendly waste management. It was planned to be half-funded from government asset sales with the remaining one billion pounds coming from the private sector. -6-
  • 7.  UK Study Questions FTSE Firms’ Carbon Data Reporting A UK study released in late March shows that even though investor groups demand a way to accurately compare sustainability reports, only 75 companies in For more details, the FTSE 350 published some kind of assurance for sustainability, according to please visit Carbon the report. Only 62 of these were carried out independently using a recognized Smart. assurance standard. Many others simply could not verify the emissions they reported. The report done by Smart Sustainability, which argues for greater transparency and standardization in sustainability reporting.  New Governance Rules Introduced For The Equator Principles The Equator Principles (EPs), announced to formally adopt new Governance For more details, Rules from 1 July 2010, the result of several years’ intensive work by the Equator please view Equator Principles Financial Institutions (EPFIs). The Governance Rules ("the Rules"), Principles. that form the basis of the newly created Equator Principles Association, have been established to confirm the purpose, operation and management structure of the Equator Principles. The Rules formalize existing practices and procedures, increase the transparency of the Association, and will ensure that EPFIs meet their responsibilities such as public reporting on EP implementation. Coming Up Soon  The green credit guideline for steel and iron industry at national level and provincial level to be finalized by August  Draft programme for the 2nd foreign trainers’ training to be finalized in August  Series of translated literature on sustainable banking will be ready for dissemination by August Contact Ms. NI, Huan, Project Manager Green Credit Policy Advisory Project SynTao Co., Ltd Room 2302, Jianwai SOHO Building 12, E-mail: nihuan@syntao.com No.39 East 3rd-Ring Road, Chaoyang District, Tel: (China)+86-10-58699466 Beijing, 100022, China (UK)+44-7894 986 156 Fax: +86-10-58699466 ext. 623 Website: www.syntao.com -7-