China's Global Role / Reports

Ten Perspectives on How Financial Institutions Can Protect the Environment

Financial institutions from countries such as China, Brazil, India and Thailand are playing an increasingly active role in financing infrastructure and mining projects around the world. With new loan approvals of $36 billion, China Exim Bank for example became the world’s largest export credit agency in 2007. Although they invest in environmentally sensitive sectors, many emerging financiers do not yet apply internationally accepted standards in their projects.

This new report discusses the experience with environmental standards and how it can be useful for new financiers.

Along with its economic presence, China has rapidly expanded its environmental footprint in Africa. An important objective of China's Africa strategy is to extract natural resources which have so far not been accessible. Such resources are often located in fragile ecosystems and countries plagued by corruption and conflict. As a long-term partner in Africa's development, China has an interest in addressing the environmental impacts of its projects. The Chinese government has issued guidelines on the impacts of overseas investments, but will need to strengthen them further.

China's Environmental Footprint in Africa examines China's Africa strategy, and analyzes similarities and differences with the Western approach.

Chinese investment in Cambodia's hydropower sector is threatening some of the country's most precious ecosystems and the livelihoods of thousands of people, according to a new research report released today. The research report, prepared by International Rivers and the Rivers Coalition in Cambodia, highlights the growing interest in large-scale hydropower dam development by Cambodian decision makers backed mainly by Chinese project developers and financiers.

As part of its going-out strategy, China is rapidly expanding its economic cooperation with Africa. China Exim Bank plays an important role in this cooperation. The policy bank is financing more than 250 projects in Africa, primarily in the infrastructure sector.

中国已经成为非洲基础建设项目的主要投资者。中国进出口银行，这个国家的官方信
贷机构，已经批准了65 亿向非洲的贷款，其中大部分都是基础设施投资。中国进出口银
行的贷款往往是中国与非洲国家更大合作项目的一部分，包括商业贸易、武器出口、学生
交换，以及维和人员的派出等。

The growing importance of China Exim Bank

In China, approximately one fifth of humanity lives on only 7% of the world’s cultivable land. The country does not have sufficient reserves of oil, timber or mineral resources to sustain its rapid economic growth. Foreign investment and trade contracts help to secure the resources which China lacks at home. Exports also help to overcome the permanent employment crisis which China’s rapid rural transformation has created.¹

Representatives of Western banks and export credit agencies frequently argue that their environmental policies are being undercut by financial institutions from middle–income countries, and particularly from China. It is ironic that the same banks miss no opportunity to provide finance to their competitors from China and other countries.