Credit policy of China Minsheng Bank on energy

#Green Finance# #ESG Policy# #Credit Policy#

The credit policy of energy sector is one of the important contents of the credit policy of China Minsheng Bank.

China Minsheng Bank clarified the overall strategy, access standards and key points of risk control, and formulated differentiated credit policies in combination with the national carbon emission reduction supporting tools and the policy guidance on re-lending for clean and efficient utilisation of coal. China Minsheng Bank actively supported clean energy, supported the financing needs of industry leaders and advanced enterprises in the traditional energy industries in areas, such as energy saving and carbon reduction, industrial upgrading, volume reduction and replacement, and M&A, and accelerated the exit from inefficient and backward enterprises and production capacity. It clarified that credit support would not be provided to projects involving ESG risks such as substandard environmental impact assessment and pollutant discharge, ecological protection and immigrant resettlement failure, and improper hazardous waste disposal. 

For example, hydropower projects were required to conduct immigrant resettlement and ecological protection programmes, and the sites should not be located in prohibited areas; thermal power projects should avoid the risk of rising environmental costs and the risk of replacement of traditional thermal power by rapidly developing new energy technologies; coking projects should guard against the risk of substandard environmental protection indicators and the risk of lacking of a Pollutant Discharge Permit.