Green credit scheme ‘meets resistance’

Beijing's move to cut bank credit to polluters has met strong resistance from local governments, Reuters reported China's environment watchdog as saying on Wednesday.

The State Environmental Protection Administration (SEPA) and the People’s Bank of China launched the green credit scheme in July last year, in which the central bank would instruct lenders to reduce or stop loans to polluting firms blacklisted by SEPA.

However, a short-term view of the economy means local governments are still protecting profitable yet highly polluting sectors, SEPA deputy head Pan Yue was quoted as saying.

"Some provinces and financial institutions have not implemented the green credit policy at all," Reuters quoted Pan as saying on SEPA’s website.

Many small polluters rely on private borrowing from relatives and friends instead of bank credit for capital, Pan said.

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