1. Quarterly Newsletter July-September 2009 Vol. 01
This quarterly newsletter presents updates about the SPF-supported China Steel and Iron Sector Green Credit Policy
Advisory Project, managed by SynTao Co., Ltd, in partnership with Policy Research Centre for Environment and
Economy (PRCEE), Ministry of Environmental Protection of China.
government departments to cooperate and communicate at
Project Updates the provincial level to further implement the Green Credit
Policy.
The First Fact-finding Trip to Sichuan Province
Concluded
The first fact-finding trip to the pilot province Sichuan
was concluded on 24th July. The three-day visit collected
related data, comments and suggestions from various local
stakeholders as planned. Mr. YUAN Qingdan, the Deputy
Director-General of PRCEE, MEP led two experts to join
SynTao’s project team to Sichuan province.
With the support of Sichuan Environmental Protection
Bureau (EPB), a workshop was held in Chengdu on 23th
July. It was well attended by more than 20 participants Dr. GUO, Peiyuan (second to the right), General Manager of
SynTao Co., Ltd was introducing the project background at the
from Sichuan EPB, Sichuan Banking Regulatory workshop in Chengdu.
Commission (BRC) and Sichuan Economic Commission
(SEC). The delegation also met experts from local The officials are keen to learn how to guide capitals to
research institutes and representatives from selected steel flow in energy saving and environmentally-friendly
& iron enterprises during the trip. technologies and industries by developing and
implementing good financial regulation. Sichuan faces
huge challenges in achieving this target, as the post-
earthquake reconstruction has allowed some small and
medium-sized factories back to operation, some of which
hardly meet environmental standards. Local banks’
lending activities should be further regulated to address
the pressing environmental issues in Sichuan, as raised by
participants at the workshop. They expressed concerns in
regulating loans to other high polluting and high emission
industries in addition to steel and iron sector. This was
regarded “helpful” to help achieve the emission reduction
Deputy Director, Mr. YUAN, Qingdan (second to the right) was target set by the Provincial government.
chairing the workshop attended by local officials from Sichuan
EPB, Sichuan CBRC, and SEC.
After the first trip to Sichuan, a follow-up meeting was
The project team discovered that there was actual demand held on 27th July in Beijing between SynTao and PRCEE.
for practical and detailed guidelines in place for local Specific timeline for each outputs was defined..

2. Quarterly Newsletter July-September 2009 Vol. 01
Launch Workshop Successfully Held in Beijing Training Need Analysis to Local Trainees
SynTao and PRCEE co-organized a workshop to launch Completed in Sichuan
the project in Beijing on 8th September, 2009. Senior SynTao carried out a training need analysis to potential
officials from ministries concerned attended the event. Mr. trainees in Sichuan in late September. The objective is to
YUAN, Qingdan (2nd to the right), Deputy Director- design training courses within a sound framework. The
General of PRCEE chaired the event. target trainees are from Sichuan EPB, Sichuan BRC, SEC
Mr. YANG, Chaofei (5th to the right), the Director- and representatives from local banks and enterprises.
General of Department of Laws, Regulations and Policies, The training programme being developed will be delivered
Ministry of Environmental Protection delivered a keynote by both domestic and international experts.
speech. He pointed out that developing green credit According to the comments collected, more than 80%
guideline for high polluting sector was “timely and surveyed Sichuan officials are very interested in learning
imperative”. “Through controlling bank’s lending, the more specific requirements of the Green Credit policy, and
persistent overcapacity problem in this high polluting and good practices in China and other countries. They also
high emission sector would be curbed.” hope to establish a regular inter-departmental info-sharing
“The project’s pilot implementation in Sichuan province mechanism to get updated on the Policy timely .
will certainly provide valuable learning opportunity for us
and local banks. We are in need for better practices in National and Provincial Expert Teams Formed
promoting green financing,” noted Mr. XIE, Tian, Deputy The project’s search for experts to conduct studies at
Director-General of Sichuan EPB (4th to the right). national and provincial level has started in early June.
After nearly two months searching and interviewing, two
teams for delivering national and provincial outputs were
jointly decided by SynTao and its partner PRCEE.
PRCEE team and an expert from the Environmental
Engineering Evaluation Centre (EEEC) of Ministry of
Environmental Protection (MEP), will work together to
conduct the national sector research and draft the green
credit guideline for the steel and iron sector. The team
leader, Mr. SU, Yi, from EEEC has been working on
environmental impact evaluation for projects in steel and
iron sector and metallurgy sector for over two decades. He
Dr. GUO, Peiyuan (2nd to the left), General Manager of is very familiar with environmental standards, market
SynTao introduced the project background, objectives, entry, and the most updated industrial policies in the
structure and monitoring indicators at the event. sector. Since he has been working with steel and iron
Ms. ZHOU, Jin (3rd to the right), Chairwoman of China enterprises for years, he also understands enterprises’
Industrial Federation, Ms. Cocoa Liu (5th to the left), needs on improving energy efficiency including financing.
Donor Representative, Project Officer from the British In Sichuan, Mr. LAN, Shi, Vice President of Sichuan Academy of
Embassy, and Ms. LI, Xiaowen (4th to the left), Deputy Industrial Environmental Monitoring and Research is leading the
Division Director, Statistics Department of China Banking provincial sector study. An expert team from the Environmental
Regulatory Commission, discussed the significance and Policy Research Institute of Sichuan EPB will work on the green
approaches and policy implications of introducing green credit guideline development at the provincial level.
credit guideline to the banking sector, through which to Both teams will receive guidance from the project management team
generate greener impacts on “Liang Gao” industries. to ensure the consistence and quality of the project outputs.

3. Quarterly Newsletter July-September 2009 Vol. 01
Project Background
collaboration and communication between
Since the official launch in July 2007, China’s
environmental authorities, banking regulators and
Green Credit Policy has gradually become an
commercial banks through the development of a
important economic instrument to govern corporate
green credit guideline for China’s one of most
environmental compliance, promote energy saving
polluting industries, steel and iron industry. Sichuan
and emission reduction, mitigate financial risks and
Province is chosen as the pilot province.
restructure industrial structure. Commercial banks
had been expected to play a key role in guiding Project Milestones:
financing to flow to environmentally friendlier ● December 2008, SynTao’s bidding document
sectors and enterprises. However, one of the main was submitted to Foreign and Commonwealth
hurdles of further implementing the policy Office of the UK government
nationwide is the lack of certain practical guidelines ● May 2009, FCO officially approved the two-
for banks to evaluate borrowers from “high year funding support to SynTao after two
polluting” and “high emission” industries. These rounds of selection
guidelines cannot be developed without the ● July 2009, SynTao and its partner, PRCEE,
involvement of environmental authorities. carried out the first fact-finding to pilot
province Sichuan
SynTao Co., Ltd was granted funding by the British ● August 2009, expert teams to deliver national
Strategic Programme Fund to formulate a policy and provincial outputs were formed
advisory project in collaboration with PRCEE of ● September 2009, the project launch event was
MEP. The project aims to promote closer successfully held in Beijing
Coming Up Soon Contact
● A training programme and an information- Ms. NI, Huan, Project Manager
sharing workshop themed in sustainable Green Credit Policy Advisory Project
financing will be held in Sichuan province in SynTao Co., Ltd
late November, targeting selected enterprises, Room 2302, Jianwai SOHO Building 12,
local officials from environmental authorities No.39 East 3rd-Ring Road, Chaoyang District,
and banking regulatory commission. Beijing, 100022, China
● The drafts of China and pilot province’s steel
and iron sector’s energy efficiency potential E-mail: nihuan@syntao.com
and investment opportunities studies will be Tel: (China)+86-10-58699466
completed in late November. Workshops will (UK)+44-7894 986 156
be organized in Beijing and Chengdu Fax: +86-10-58699466 ext. 623
respectively to review the drafts. Website: www.syntao.com