OREANDA-NEWS. June 4, 2012. Agricultural Bank of China Limited (ABC) has been promoting and implementing the low-carbon financial development strategy by integrating the idea of "green governance" in its operations and management, in order to build itself as an environmentally friendly, amicable and resource-efficient "green bank".

Active Support to the "Green Credit" Project

ABC strongly bolsters green, low-carbon, and circular economy. It regards companies' compliance to environmental protection laws and regulations as one of the essential conditions for loan approval and makes a veto decision if there is any environmental protection-related delinquency. It disapproved 106 loan applications involving RMB4,157 million in 2011 due to environmental protection-related factors. It prioritizes loan applications for projects that adopt advanced technologies for energy saving. By the end of 2011, ABC had granted a total of RMB88,168 million loans to 1,599 energy-saving and environmental protection projects, driving the optimization of bank credit structure and the sustainable development of credit businesses.

Strict Control over Loans to Industries with High Energy Consumption, High Pollution and Overcapacity

ABC strictly oversees those industries with high energy consumption, high pollution and overcapacity in credit management. It has effectively controlled the growth rate and increase in the related loans by improving industry credit policies, lifting application thresholds, strengthening credit limit management and control, transferring approval authority to upper levels, and promoting name-list management. In 2011, it formulated credit policies for the poly silicon, plate glass, and wind and electrical equipment manufacturing industries, and thereby covering almost all industries with high energy consumption, high pollution and overcapacity. It adopted customer name-list management mechanisms for 12 industries and automatic management of credit management system of more than 3,000 customers from those industries. 1,099 customers exited in 2011, involving RMB44,427 million of loans.

Active Innovation of Green Financial Services

ABC was the first state-owned commercial bank that launched "CDM consulting services" in as early as 2008. The services assist domestic enterprises, especially county-level enterprises in central and western China, in obtaining technological funding through international trading mechanisms. They have not only promoted ABC's support to the development of green and low-carbon economy, but also served the Sannong course. As a result, ABC reaches a fine balance between "social responsibilities" and "economic benefits". Moreover, ABC has actively promoted and implemented the idea of "green consumption" and has strengthened efforts to promote the Kins Environmental Protection Card. It has also launched "Low-carbon Fund Custody" and "Renewable Resources Value-added Tax Refund Account Custody Loan" services to extend ways to serve low-carbon economy and effectively promote energy saving and environmental protection.

Continuous Adherence to the Concept of "Green Credit"

ABC will continue to fulfill the social responsibilities as a corporate citizen and a state-owned bank, actively nurture the "Green Credit" culture and promote the construction of a "Green Credit" bank. It will further improve the mechanisms of procedures of "Green Credit", continue to strictly control the lending volume and growth rate to industries with high energy consumption, high pollution and overcapacity and strengthen its support to green, low-carbon, and circular economy. It will also continue to develop new products and improve service quality to support the course of green development.