Chinese banks boost green financing for green projects

Supports drive to promote ecological progress and curb pollution.

Ten major Chinese banks, including the Big Four state-owned banks, have pledged strong credit support for the development of a green economy in China. They have agreed to create a mechanism to provide incentives that will be key to the development of green finance.

The mechanism will accelerate capital influx into the green economy sectors. Analysts noted that ICBC has been improving its credit classification standard based on the "Equator Principles." The bank applies its green credit policies in 61 sectors.

The Equator Principles are a voluntary set of guidelines that require signatory banks to incorporate social and environmental issues in project financing.

In the guidelines for green credits released in March 2012, the China Banking Regulatory Commission urged Chinese banks to use green credits as a tool to support the nation to cut carbon emissions while achieving a sustainable growth.