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Notice of the China Banking Regulatory Commission on Printing and Distributing the "Guiding Opinions on Credit Conservation for Energy Saving and Emission Reduction"

Guidance on credits for energy conservation and emission reduction

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Article 1: Banking financial institutions shall conscientiously implement the Notice of the State Council on Printing and Distributing a Comprehensive Work Plan for Energy Conservation and Emission Reduction (Guo Fa [2007] No. 15) and the

Article 4 Banking financial institutions shall be based on

Article 11 Banking financial institutions should follow the principles of "know your customer" and "know your customer's business" through field investigations and consultations with energy conservation and emission reduction authorities, industry associations, credit bureaus, and other appropriate Methods, in-depth understanding of the completion of energy-saving and emission reduction targets and environmental compliance of credit-granting enterprises and projects, and careful analysis of possible energy consumption, pollution problems, and various risks that may arise from credit-granting enterprises and projects.

Article 12 "Six Essential Conditions" for Banking Financial Institutions to Start Project Construction (must comply with industrial policies and market access standards, project approval approval or filing procedures, land pre-examination, environmental impact assessment approval, energy-saving assessment review, and credit Regulations and requirements such as security, urban planning, etc.) to conduct a strict compliance review to obtain the project's approval by the relevant competent authority as the minimum requirement for a project credit compliance review. Bank institutions should pay attention to formal compliance requirements, such as the authority, completeness and legality of relevant procedures for relevant approval (or approval, filing) documents, as well as substantive compliance requirements when conducting compliance reviews. Regulatory requirements, including new projects must comply with national industrial policies and development trends, project environmental impact assessments should be compatible with the overall requirements of planning environmental impact assessments, and technical and economic standards should in principle be aligned with domestic advanced and international levels.

Article 13 Banking financial institutions shall strengthen the management of the disbursement of credit funds for project construction. Where a construction project should be obtained without environmental assessment approval, the banking institution shall not allocate funds in advance for preparation and construction before commencement; if the design, construction, and operation of the environmental protection facilities of the project are not the same as those of the main project, the banking institution shall suspend the construction of the main project. Funds are disbursed until the "three simultaneous" is realized; after the completion of the project, it shall be obtained without the project completion environmental assessment approval, and banking institutions shall not allocate project operating funds; for projects invested and constructed by domestic enterprises abroad, the banking institutions are in the process of credit management Construction enterprises should be urged to abide by the environmental protection and related laws of the countries or regions where the projects are located, and to follow international good practices in assessing and controlling the environmental and social risks of internationally financed projects.

Article 14 Banking financial institutions shall strengthen the classified management of project credit, and qualified banks may classify them into three categories based on the degree of environmental impact of borrowing projects:

Category A: Projects that severely change the original state of the environment and produce adverse environmental and social consequences that are not easily eliminated;

Category B: Projects that have adverse environmental and social consequences but are easier to eliminate through mitigation measures;

Category C: Projects that do not have significant adverse environmental and social consequences.

Banking institutions should conduct classified management of the above-mentioned different types of project credit. For projects classified as category A and category B with greater risks, banking institutions should require construction units and even important third parties such as contractors, suppliers, supervisors, etc. to establish and implement management systems for environmental impact and Action plans, communication systems with local communities and the general public, and monitoring, evaluation and reporting (notice) systems, while monitoring and evaluating its environmental risk control mechanisms, capabilities, and results through independent third parties. For the projects with lower risks in category B and projects classified as category C, the banking institutions shall pay due attention to the environmental risk control of construction units.

Article 15 Banking financial institutions shall implement list management for credit-granting enterprises that have significant energy consumption and pollution risks. The credit companies included in the list include those listed by the national and local authorities responsible for energy conservation and emission reduction as key monitoring, and other credit companies with significant energy consumption and pollution risks independently identified by banking institutions. Banking institutions should take the initiative to communicate with the competent department of energy conservation and emission reduction, keep abreast of the completion of energy conservation and emission reduction targets of the above-mentioned enterprises and the status of environmental protection compliance, continuously update the list of enterprises, and strengthen the credit management of listed credit companies.

Article 16 Banking financial institutions shall seek various ways to mitigate compliance and credit risks related to energy consumption and pollution. Construction units may be required to increase the proportion of capital, issue medium and long-term corporate bonds (corporate bonds), and add energy conservation. Technology reduction projects and investment reform plans for reducing consumption, and pledges of credits with operating rights and cash flow after the completion of profitable projects can be required. The construction unit can also be required to insure the project during the construction period. Insurance is related to energy consumption and pollution risks. Engineering liability insurance, environmental liability insurance, product liability insurance, etc. For credit-credit companies and projects that have significant risks, they can be strengthened through syndicated loans to diversify risks.

Article 17 Banking financial institutions shall fully consider the credit risks associated with energy consumption and pollution of credit enterprises and projects in the risk pricing of credit products, and reasonably determine the pricing of credits for energy conservation and emission reduction in accordance with the principle of proportionality between risk and return. In determining risk-adjusted return indicators and allocating economic capital, full consideration should be given to the various types of risk impacts that may arise from companies and projects in high energy-consuming and highly polluting industries.

Article 18 Banking financial institutions should pay close attention to the impact of the state's adjustment of industrial structure and closure of backward production capacity on the repayment ability of credit-granting enterprises and projects, and pay close attention to changes in energy-saving emission reduction policies and energy-saving emission reduction standards to increase cash flow to credit-granting enterprises and projects. To strengthen the sensitivity analysis, and make timely adjustments in asset risk classification, preparation and accrual, loss write-off, etc.

Article 19 Banking financial institutions shall strengthen the management of credit contracts for enterprises and projects that involve energy consumption and pollution risks, and establish clauses related to energy consumption and pollution risks in the credit contracts, including the borrower's declaration of energy conservation and emission reduction compliance. Articles, when the promises are not fulfilled or energy consumption and pollution risks appear, the terms of agreeing to expedite loan recovery or suspension of loans, the terms of agreeing to exercise pledge rights in advance, etc., and strictly monitor the risk of default.

Article 20 Banking financial institutions shall strengthen personnel training and capacity building, accumulate professional knowledge related to energy consumption and pollution, and strive to improve their credit management capabilities for enterprises and projects involving energy consumption and pollution risks. According to the business scale of the institution, the credit industry and the risk characteristics of customers, relevant professional talents can be cultivated and introduced, and related professional services can be obtained through third-party review or other effective service outsourcing methods.

Article 21 Banking financial institutions shall strengthen the disclosure of credit information for energy conservation and emission reduction, publicize their institutions' energy conservation and emission reduction credit policies and standards, and disclose the credit status of enterprises and projects with significant energy consumption and pollution risks. Market and stakeholder oversight.

Article 22 The CBRC will consider crediting for energy conservation and emission reduction as an important content of the rating of banking institutions, and link the results of the evaluation with the performance evaluation of senior executives of the regulated banking institutions, access to branches, and business development. To be encouraged. Banking institutions with high credit ratios and high growth rates in high-energy-consuming and highly polluting industries will arrange special inspections and urge them to make rectifications based on the inspection results. When necessary, external auditors will be required to pay attention to the credit risks and compliance risks associated with audited banking institutions and high energy-consuming and highly polluting companies and projects, and play a supervisory role in external audits.

Article 23 Banking associations at all levels shall actively assist and guide banking institutions in the work of granting credit for energy conservation and emission reduction, promote advanced experience and good practices, provide information services and technical advice, and strengthen ties with relevant industry associations and professional associations. .

Article 24. Non-bank financial institutions, such as trust companies, enterprise group finance companies, and financial leasing, shall do a good job with reference to these guidelines.