China to introduce ‘green insurance’

China plans to launch an insurance system to cover environmental disasters and ensure pollution victims receive due compensation, Xinhua news agency reported on Monday.

It will start with a pilot project, Xinhua quoted Pan Yue, deputy head of the State Environmental Protection Administration (SEPA), as
saying, but the project would extend to all industries with a high risk of pollution incidents by 2015.

Firms dealing with high-risk chemical products, petrochemicals and hazardous waste would be the first targeted by the scheme, Pan was
quoted as saying.

But the scheme will allow firms to pollute without consequence, Pan said, because "the insurance premium is in proportion to a company’s
pollution risks."

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