BEIJING (July 16, 2021) - The Chinese government issued guidelines to encourage companies to incorporate green development in overseas investments.
Titled “Green Development Guidelines for Overseas Investment and Cooperation”, the guidance was jointly issued by the Ministry of Ecology and Environment and the Ministry of Commerce. It is the Chinese government’s latest attempt at reining in overseas carbon emissions by greening its overseas investments.
The guidelines encourage Chinese businesses to conform to international practices and standards in environment and biodiversity so that they can “gain the upper hand in global cooperation and competition”. In particular, the guidelines emphasize to:
Adhere to green development-Encourage Chinese companies to integrate the green concept throughout the overseas investment and cooperation process ranging from investment, construction to operations; Support overseas investment in solar energy and wind energy, among other forms of clean energy, and encourage Chinese companies to strengthen cooperation with foreign companies and institutions in green development.
Build green overseas economic and trade cooperation zones-Encourage the formulation of science-based green-development plans to build green and low-carbon overseas economic and trade cooperation zones; Continue to work toward the intensive use and recycling of resources and energy to reduce carbon emission; Take green development in cooperation zones to new heights.
Prevent eco-environmental risks- Encourage Chinese companies to prevent eco-environmental risks, encourage overseas Chinese companies to better manage eco-environmental issues and take appropriate and necessary measures to mitigate adverse environmental impacts; In case of adverse impacts on biodiversity, protect and restore ecosystems according to the law or international practices; Encourage Chinese companies to adopt the standards of international organizations or multi-lateral institutions or Chinese standards when laws and regulations are absent or environmental standards are too low in the host country.
Optimize green oversight-Enhance strategic synergy and policy communication with host countries, create a sound external environmental for the development of Chinese companies; Improve the filing system for outward investment and cooperation, better monitor and regulate the green development of Chinese companies with information technology; Encourage trade associations to improve the green development of outward investments by means of norms, consultancy and self-discipline; Encourage overseas Chinese chambers of commerce or trade associations to formulate green guidelines in host countries.
The guidelines apply to Chinese companies that invest overseas, as well as commerce and environment authorities.
