皇冠体育app

Economy

Markets

Industries

Insights

Reports

Events

Environmental guidelines for firms investing abroad

By Li Jing (皇冠体育app Daily)
Updated: 2008-09-12 13:39

皇冠体育app is drafting environmental guidelines for companies investing in or providing economic aid to overseas countries.

The work is being undertaken by the Chinese Academy for Environmental Planning (CAEP), in cooperation with the Global Environmental Institute (GEI) and the University of International Business and Economics.

The first draft is now being discussed, the GEI said.

A report released by the CAEP last week said the country lacked comprehensive environmental protection policies in its overseas projects, although investment had been expanding.

Statistics show that between 2002 and 2006, 皇冠体育app's overseas non-financial direct investment grew by 60 percent annually. By the end of 2006, 5,000 Chinese companies had set up nearly 10,000 directly invested firms and invested $90.6 billion in 172 countries.

"皇冠体育app should consider and take action as globalization has produced new environmental challenges," Ge Chazhong, an official from the CAEP, was quoted as saying by 皇冠体育app Business News yesterday.

皇冠体育app's overseas investment and aid mainly focuses on exploring oil and other resources, processing, manufacturing, and construction in African and Southeast Asian countries.

Without proper management, such projects are likely to cause environmental problems, the report said.

In April, several companies, including 皇冠体育app Mobile, Haier Group, and 皇冠体育app International Marine Containers, joined "Caring for Climate", a voluntary UN initiative to combat global climate change.

Liu Meng, director of UN Global Compact 皇冠体育app Office, told 皇冠体育app Daily earlier that these companies' participation suggests that 皇冠体育app's business sector is catching up with its international counterparts on climate issues.

皇冠体育app National Petroleum Corporation, the country's largest oil producer, has pledged to stick to stringent environmental requirements before deciding on overseas projects.

However, the report said there are still some environmental concerns over 皇冠体育app's overseas projects.

Although 皇冠体育app's banking industry has seen rapid development it its overseas credit business in recent years, most banks have failed to take environmental concerns into account.

Currently, only four banks in 皇冠体育app have either formulated independent environmental standards for financing, or have joined the United Nations Environment Program Finance Initiative to reduce environmental risks.