The Green Credit Guidelines for Chinese banks

On the 24^th day of February 2012, China Banking Regulatory Commission (the "CBRC") issued the Green Credit Guidelines (the "Guidelines"), which require banking financial institutions ("Banks") to encourage energy saving, emission reduction and environment protection by managing environmental and social risk¹ of its client. The Guidelines apply to domestic policy banks, commercial banks, rural cooperation banks and rural credit cooperatives. In addition, village banks, loan companies, rural funding cooperatives and non-banking financial institutions shall also adopt the Guidelines to the extent applicable.

The Guidelines introduced some specific requirements in relation to the following aspects: