Green loans include residential mortgages, commercial construction loans, home equity loans, auto loans, fleet loans, and green credit cards.

The particularity of green credit business means that green credit policies require public supervision. The government and banks should not only disclose information on relevant environmental and social impacts, but also provide various conditions including information disclosure, necessary funding and a mechanism for truly equal dialogue. The introduction of "green credit" has raised the threshold for corporate loans. In credit activities, compliance with environmental testing standards, pollution control effects and ecological protection are important prerequisites for credit approval. Economic leverage guides environmental protection. Economic leverage can enable companies to internalize the cost of pollution, thereby achieving ex-ante pollution control instead of the usual ex-post pollution control. These are obviously goals that cannot be achieved by administrative means. Commercial banks can effectively promote sustainable development by guiding funds to industries and enterprises that are beneficial to environmental protection through differentiated pricing. At the same time, it enhances banks' ability to control risks and creates conditions for actively promoting green credit. It is also conducive to getting rid of the shadow of "bad debts" and "dead debts" that have long troubled loans in the past, thereby improving the operating performance of commercial banks.

The State Environmental Protection Administration, the People's Bank of China, and the China Banking Regulatory Commission jointly issued regulatory policies based on the following three reasons.

1. my country is facing an increasingly severe situation of energy conservation and emission reduction. After various economic indicators were released in the first half of 2007, whether it was the Political Bureau meeting of the Central Committee of the Communist Party of China, the executive meeting of the State Council, the press conference of the National Development and Reform Commission, and the press conference of the State Council Information Office, the "energy conservation and emission reduction situation" was mentioned. It’s quite serious.” It was also mentioned repeatedly that the 4% energy saving target and 2% emission reduction target set last year were not met. According to statistics, in the first half of 2007, the added value of industry increased by 18.5%, and the added value of the six major energy-consuming industries including petrochemicals, chemicals, building materials, steel, nonferrous metals and electricity increased by 20.1%, which was 1.6 percentage points higher than that of industry. How to curb the blind expansion of these energy-intensive and polluting industries?

2. As the environmental violations of construction projects and enterprises in some areas become more prominent, and as the government becomes increasingly strict on the accountability of enterprises for environmental pollution, the credit risks caused by the closure of polluting enterprises have also begun to increase. .

3. In the past, the regulatory policies of single departments of environmental protection agencies were subject to problems such as limited regulatory scope, insufficient regulatory intensity, and insufficient regulatory means. The "Green GDP Report" came to nothing, and there were four large-scale environmental protection campaigns since 2005. The limited effects of law enforcement actions fully reflect the embarrassing state of "more than enough intention but not enough power".