ANNOUNCEMENT 20 Nov 2018
November 20th, 2018 - The Chinese government announced a plan to increase financing for 'green' business activities in rural China.
NUMBER OF INTERVENTIONS
PRC Ministry of Industry and Information Technology, November 20th, 2018. (工信部联节〔2018〕247号 工业和信息化部 中国农业银行关于推进金融支持县域工业绿色发展工作的通知)
On November 20th, 2018, the Chinese Ministry of Industry and Information Technology released Gongxinbu Lianjie 2018/247, a national-level departmental plan (hereafter, 'Plan') to increase the availability of financing to firms, individuals or projects in rural areas that are in some way environmentally friendly.
Specifically, the November 2018 plan makes reference to the top-level 'Green Manufacturing System' plan (see related act for more info).
The Plan specifies the Agricultural Development Bank (ADB) of China as its means of achieving the goals laid out therein.
To achieve said goals, several action measures are mentioned.
These include increasing the efficacy in identifying eligible projects, as well as increasing the amount of supportive financial products that are made available to them.
The eligibility criteria that are mentioned in the plan are vague. Various clauses that speak of 'innovative green financial products' and the like are stated. It can be surmised that the announcement seeks to target any firm, project or individual that contributes to an increased level of environmental friendliness in China's rural regions, where regard for the environment is generally low.
Eligible projects will be identified by the ADB and offered more lenient credit agreements, other 'innovative financial products', as well as prioritised access to financial management services.
In addition, the projects must be recommended to the Ministry of Industry and Information Technology in order to be 'included in supporting policies of local governmental authorities'.
Finally, the Plan says it intends to 'strengthen risk prevention and control', as well as 'increase publicity' of the plan.
The Plan emphasises that recipients will be 'local'. As such, foreign firms can expect not to acquire eligibility for any support.
In terms of sectoral targeting, there is little to no mention of this in the Plan, hence its classification as a horizontal measure.