China Green Taskforce Report: Green Rating

Country Paper

Authors: Green Finance Task Force   

Published By: UNEP Inquiry    Research Bureau of the People's Bank of China   

Date: Apr 2015

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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.
[NB: This paper is one chapter of the broader report “Establishing China’s Green Financial System” developed by the China Green Finance Task Force, which was convened by the Research Bureau of the People’s Bank of China together with the UNEP Inquiry]

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