China To "Rate" Environmental Protection Efforts

As a "green" start to the new year, the Ministry of Environmental Protection of the People's Republic of China ("MEP") announced on January 2 the introduction of a credit rating scheme ("Scheme") that will measure a company's environmental protection efforts according to a designated standard. The Scheme is due to launch on March 1.

The rules that govern the Scheme will apply to companies that are responsible for high levels of pollution and pose great risk to the environment. Industries caught by the Scheme will include energy, transportation, thermal power, steel, cement, electrolytic aluminum, coal, metallurgy, chemical, petrochemical, building materials, paper, brewing, pharmaceutical, fermentation, textile, leather, and mining. Companies that exceed prescribed emissions standards, use or produce toxic and hazardous materials, have caused significant environmental damage, have been fined more than 50,000 RMB or possess a recordable offense, or have been