Companies on pollution blacklist have loans recalled

Appearing on the list of thirty of China's most heavily polluting enterprises has resulted in twelve of the top polluting companies being disqualified from receiving loans. The list complied by the State Environmental Protection Administration (SEPA) was submitted to the People's Bank of China and the China Banking Regulatory Commission in July.

Banks have decided to recall, suspend or reject the loans of twelve of the companies on the list that failed to pass environmental assessments in accordance with China's new "green-credit policy," according to Xinhua.

By recalling or denying loans SEPA hopes to force enterprises to pay the price for environmental violations, Xinhua writes. However, as the maximum fine for environmental violations is only 100,000 yuan (about 10,000 euros), the companies will not likely be largely affected by them.

Under the "green-credit policy" issued in July, SEPA is required to hand over lists of heavy polluters to be disqualified from receiving loans from any bank to the central bank and the regulatory commission.

The policy also calls for recalling the loans of companies that already have loans, but that have been found to violate environmental protection regulations.

The SEPA is currently working in collaboration the Ministry of Finance, the China Insurance Regulatory Commission and the China Securities Regulatory Commission to devise new economic policies to promote environmental protection.