China Green Taskforce Report: Green Rating
Green ratings for projects and financing for companies as part of a green credit information system makes it possible to evaluate the positive and negative environmental externalities of these projects and enterprises in a science-based manner and justify the decision-making of fiscal subsidies or penalties, discounts of bank interest rates and bond financing cost.
This paper recommends that:
- Undertake research on the impact of green factors on sovereign government, local government and corporate risk and credit worthiness.
- Launch pilot programs for green credit ratings by commercial banks and policy banks, as well as by third-parties for green bonds.
- Develop a green credit information system at the Credit Information Centre of the People’s Bank of China
- Promote the use of green credit ratings for assessment of bank loan applications, provision of preferential green loans and tax support and impact investment.
Related Inquiry Publications
- China Green Finance Task Force Report: Mandatory Disclosure
- China Green Finance Task Force Report: Lender Liability
- China Green Finance Task Force Report: Green Insurance
- China Green Finance Task Force Report: Environmental Cost Analysis
- China Green Finance Task Force Report: Stock Index