• About
  • Archive
  • Contact
  • Home 1
  • Submit a Story
  • Submit a Story
  • USCBC Podcasts
China Business Review
  • Operations
    Managing Risk in the “New Era”

    Managing Risk in the “New Era”

    Design Patents vs. Trade Dress: Protecting IP in China

    Design Patents vs. Trade Dress: Protecting IP in China

    As China Emerges from COVID-19, US Companies Invest to Compete

    As China Emerges from COVID-19, US Companies Invest to Compete

    Inside the Mad Rush for Masks – Anatomy of a 10 Million Mask Order

    Inside the Mad Rush for Masks – Anatomy of a 10 Million Mask Order

    Addressing Risk in the Era of US-China “Great Power” Competition

    Addressing Risk in the Era of US-China “Great Power” Competition

    The Year in Social Credit: Where is Corporate Social Credit Going in 2020 and Beyond?

    The Year in Social Credit: Where is Corporate Social Credit Going in 2020 and Beyond?

  • Politics
    Hong Kong’s National Security Law, Five Months In

    Hong Kong’s National Security Law, Five Months In

    China Implements its Long-Awaited Unreliable Entities List Mechanism

    China Implements its Long-Awaited Unreliable Entities List Mechanism

    Competing WTO Reform Agendas and the Contest for the Next Director-General

    Competing WTO Reform Agendas and the Contest for the Next Director-General

    China Eyes Further Northeast Asian Economic Integration in RCEP

    China Eyes Further Northeast Asian Economic Integration in RCEP

    COVID-19 Could Doom or Deliver US-China Commercial Relations

    COVID-19 Could Doom or Deliver US-China Commercial Relations

    A Game of Chicken

    A Game of Chicken

  • Tech
    Export Controls on Emerging and Foundational Technologies: A Null Set?

    Export Controls on Emerging and Foundational Technologies: A Null Set?

    How Companies Are Reacting to China’s New Data Security Scheme

    How Companies Are Reacting to China’s New Data Security Scheme

    China’s Participation in International Standards Setting: Benefits and Concerns for US Industry

    China’s Participation in International Standards Setting: Benefits and Concerns for US Industry

    The Hidden Challenges of China’s Booming Medical AI Market

    The Brave New Business Models Making Waves in China’s Ecommerce Market

    Defining “Emerging Technologies”: Industry Weighs In on Potential New Export Controls

    Defining “Emerging Technologies”: Industry Weighs In on Potential New Export Controls

    Trending Tags

    • Intellectual Property
    • innovation
    • cybersecurity
    • ecommerce
    • tech
  • Society
    COVID-19 Could Doom or Deliver US-China Commercial Relations

    COVID-19 Could Doom or Deliver US-China Commercial Relations

    The Year in Social Credit: Where is Corporate Social Credit Going in 2020 and Beyond?

    The Year in Social Credit: Where is Corporate Social Credit Going in 2020 and Beyond?

    Open Government Developments in China: Implications for US Businesses

    The Hidden Challenges of China’s Booming Medical AI Market

    The Handshake that Changed the World

    President Carter and Vice Premier Deng at the Performance of American Arts

    January 29, 1979 Performance of American Arts for Deng Xiaoping

  • Media

    Gallery: Craig Allen’s Trip to China

    USCBC 45th Annual Membership Meeting

    USCBC 45th Anniversary DC Open House

    USCBC President’s China Visit

    USCBC Hosts Business Roundtable with Zhejiang Party Secretary Che Jun

    USCBC hosts Comprehensive Economic Dialogue (CED) Luncheon

  • Podcasts
No Result
View All Result
  • Operations
    Managing Risk in the “New Era”

    Managing Risk in the “New Era”

    Design Patents vs. Trade Dress: Protecting IP in China

    Design Patents vs. Trade Dress: Protecting IP in China

    As China Emerges from COVID-19, US Companies Invest to Compete

    As China Emerges from COVID-19, US Companies Invest to Compete

    Inside the Mad Rush for Masks – Anatomy of a 10 Million Mask Order

    Inside the Mad Rush for Masks – Anatomy of a 10 Million Mask Order

    Addressing Risk in the Era of US-China “Great Power” Competition

    Addressing Risk in the Era of US-China “Great Power” Competition

    The Year in Social Credit: Where is Corporate Social Credit Going in 2020 and Beyond?

    The Year in Social Credit: Where is Corporate Social Credit Going in 2020 and Beyond?

  • Politics
    Hong Kong’s National Security Law, Five Months In

    Hong Kong’s National Security Law, Five Months In

    China Implements its Long-Awaited Unreliable Entities List Mechanism

    China Implements its Long-Awaited Unreliable Entities List Mechanism

    Competing WTO Reform Agendas and the Contest for the Next Director-General

    Competing WTO Reform Agendas and the Contest for the Next Director-General

    China Eyes Further Northeast Asian Economic Integration in RCEP

    China Eyes Further Northeast Asian Economic Integration in RCEP

    COVID-19 Could Doom or Deliver US-China Commercial Relations

    COVID-19 Could Doom or Deliver US-China Commercial Relations

    A Game of Chicken

    A Game of Chicken

  • Tech
    Export Controls on Emerging and Foundational Technologies: A Null Set?

    Export Controls on Emerging and Foundational Technologies: A Null Set?

    How Companies Are Reacting to China’s New Data Security Scheme

    How Companies Are Reacting to China’s New Data Security Scheme

    China’s Participation in International Standards Setting: Benefits and Concerns for US Industry

    China’s Participation in International Standards Setting: Benefits and Concerns for US Industry

    The Hidden Challenges of China’s Booming Medical AI Market

    The Brave New Business Models Making Waves in China’s Ecommerce Market

    Defining “Emerging Technologies”: Industry Weighs In on Potential New Export Controls

    Defining “Emerging Technologies”: Industry Weighs In on Potential New Export Controls

    Trending Tags

    • Intellectual Property
    • innovation
    • cybersecurity
    • ecommerce
    • tech
  • Society
    COVID-19 Could Doom or Deliver US-China Commercial Relations

    COVID-19 Could Doom or Deliver US-China Commercial Relations

    The Year in Social Credit: Where is Corporate Social Credit Going in 2020 and Beyond?

    The Year in Social Credit: Where is Corporate Social Credit Going in 2020 and Beyond?

    Open Government Developments in China: Implications for US Businesses

    The Hidden Challenges of China’s Booming Medical AI Market

    The Handshake that Changed the World

    President Carter and Vice Premier Deng at the Performance of American Arts

    January 29, 1979 Performance of American Arts for Deng Xiaoping

  • Media

    Gallery: Craig Allen’s Trip to China

    USCBC 45th Annual Membership Meeting

    USCBC 45th Anniversary DC Open House

    USCBC President’s China Visit

    USCBC Hosts Business Roundtable with Zhejiang Party Secretary Che Jun

    USCBC hosts Comprehensive Economic Dialogue (CED) Luncheon

  • Podcasts
No Result
View All Result
China Business Review
No Result
View All Result
Home Environment

China Releases Green Industry Guidance Catalogue: Opportunities for US Business?

The Paulson Institute by The Paulson Institute
April 26, 2019

Aerial view of highway and overpass in city on a cloudy day

Share on FacebookShare on TwitterLinkedin

This article was originally published by the Paulson Institute.

China released its new Green Industries Guidance Catalogue to help promote green development through clarifying the definition of “green industry” as well as harmonizing differing standards for sustainability. This new catalogue, essentially a mini-industrial plan, will be an important step in energizing and growing the Chinese sustainable industry goods and services sectors.

This past March, seven Ministries came together to launch the catalogue, including the National Development and Reform Commission, the People’s Bank of China, and the Ministry of Ecology and Environment. These powerful government bodies touch upon the key aspects of green industry from finance to buildings, energy, and new technologies. Together, they have established a plan to develop and enact policies that will support the growth of the green sector, develop a regulatory and financial infrastructure to promote investment, and determine clear standards on issues from the definition of “green” to high-level building code standards.

These policies combined with the existing push for green development could lead to China establishing the standards necessary for building a competitive industry for environmental goods and services – but also becoming a major exporter of those standards.

China’s market is the largest in the world for green goods and services, estimated by Goldman Sachs to be a $1 trillion opportunity. These new guidelines could further energize the sector through creating consistency in the understanding of what constitutes a green investment or product, but also through the creation of preferential treatment for sustainable companies.

Six broad categories of goods and services are being promoted. These range from renewables, cleaner production methods, waste management, sustainable infrastructure and services that support green development such as third-party verification and consulting. The increased focus will provide significant opportunities for Chinese and foreign companies alike.

As China defines what “green” encompasses in the financial sector, a taxonomy that the rest of the world has struggled with, it will allow for more confident investing and the potential rise of innovative financing vehicles. One of the challenges in the growth of the bond and equity markets has been deciding upon a common understanding of just what “green” encompasses.

In addition, developing a consistent definition of what constitutes a “green” company will create opportunities for increased micro-lending for small and medium-sized enterprises (SMEs).  Already, China’s major banks, such as the Industrial and Commercial Bank of China, will lend to established sustainable companies at a preferential rate, but often SMEs are too small to qualify for these loans. With the massive rise in fintech, companies such as Pintec or Ant Financial can provide microloans at a slightly preferential rate which provides capital to growing firms, but also provides financial incentive for small companies to “go green.” It is a virtuous circle.

China has also clarified how clean coal will be treated in these new guidelines. The country has taken a step forward in removing clean coal from qualifying for green bonds. Yet for the catalogue, the Ministries have chosen to retain coal in the definition of green for goods and services. They argue that coal still accounts for 60% of primary energy production and that it would be irresponsible – and unrealistic – to remove it. The compromise position is that only “clean coal” will be considered and the intent will be to promote its greater adoption.

Lastly, the new policies attempt to merge the standards that have been created through different pieces of legislation and policy guidance under one catalogue to make them accessible and easier to follow. China is rapidly moving ahead to set the standards in many of these sectors due to the fast pace of development of its own vibrant green industry—faster than the rest of the world—but also because, due to China’s sheer size, it tends to dominate.

The Green Industries Guidance Catalogue raises awareness that China’s green industry has grown 2.6 times in the last six years. As implementing guidelines are formulated to further define the opportunities, one thing that is clear is that China is moving ahead with building a vibrant “green” industry. As U.S. companies are some of the most competitive in the world in sustainability, these new guidelines should provide opportunities for firms in China.

The Paulson Institute’s Green Scene Blog features stories on green finance in China.

The Paulson Institute

The Paulson Institute

Next Post

$9 Billion and Counting

Recommended.

How Biden’s Economic Team Views China Trade Policy

January 14, 2021

Hong Kong’s National Security Law, Five Months In

November 25, 2020

China Implements its Long-Awaited Unreliable Entities List Mechanism

October 7, 2020

Competing WTO Reform Agendas and the Contest for the Next Director-General

September 22, 2020

Latest Podcasts.

A look at China’s recent spate of bond defaults

January 22, 2021

A COVID update, a record trade surplus, and new PRCG personnel

January 19, 2021

New MOFCOM rules on extraterritorial application of foreign laws

January 12, 2021

The EU-China agreement and a look at other market liberalizations

January 6, 2021
China Business Review

China Business Review is the official magazine of the US-China Business Council, a nonprofit and nonpartisan trade association that represents more than 200 American companies doing business in China.

  • How to contribute to China Business Review

Categories

  • Bilateral Relations
  • Business Etiquette
  • CBR Spotlight
  • China Deals
  • Corruption
  • Cybersecurity
  • Ecommerce
  • Environment
  • Finance
  • Galleries
  • Getting Started
  • HR & Staffing
  • Infographics
  • Innovation
  • Intellectual Property
  • Management
  • Media
  • Operations
  • Opinion
  • Policy & Regulations
  • Politics
  • PR & Marketing
  • Rural Issues
  • Safety
  • Social Policy
  • Society
  • Standards + Licensing
  • Sustainability
  • Tax
  • Tech
  • Top Story
  • Trade
  • Uncategorized
  • US-China Business Council
  • Videos

Tags

Agreements Agriculture Alibaba Best Practices Business Environment China China's Investments Abroad China Market Intelligence Chinese Consumers Chinese Investment Commentary Consumer Trends E-Commerce Economic Trends Energy Environment Events Food Foreign Investment Going Global Healthcare Reform Human Resources Infrastructure Internet Interview Investment Investments into China IPO Joint Venture Labor Legal Analysis M&A Manufacturing Media National People's Congress Q&A Strategic and Economic Dialogue Supply Chains Technology Trade Transparency US-China Relations USCBC US Exports to China Xi Jinping

Join our Mailing List

Sign up for the US-China Business Council's newsletters to stay ahead of the game with roundups, analysis, and commentary.

Sign Up

Follow Us

  • About
  • Archive
  • Contact
  • Home 1
  • Submit a Story
  • Submit a Story
  • USCBC Podcasts

© 2020 China Business Review

No Result
View All Result
  • Operations
  • Politics
  • Tech
  • Society
  • Media
  • Podcasts

© 2020 China Business Review