China's "green credit" plan encountered local obstacles

Pan Yue, the deputy director of the State Environmental Protection Administration, recently highlighted that the challenges faced by green credit policies reveal the deep-rooted difficulties in altering existing economic patterns and regulatory frameworks. He noted that some local officials have not fully implemented the central government's guidelines aimed at restricting loans to highly polluting industries. As a result, only a few provinces have seen limited success in curbing credit flow to these sectors. Since the launch of the "Green Credit" initiative, the State Environmental Protection Administration has provided banking regulators with information on approximately 30,000 companies that have relatively serious environmental violations. This effort underscores the ongoing struggle between environmental protection goals and financial sector practices. The data also suggests that while progress is being made, enforcement remains inconsistent across regions, highlighting the need for stronger coordination and stricter implementation of environmental policies.

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