The environmental watchdog is training its sights on heavy
polluters seeking listings, with a revised rule that requires its
approval for share sales in certain sectors.
The State Environmental Protection Administration (SEPA) has
updated a rule for thermal power stations, smelters, cement plants
and electrolytic aluminum producers applying for initial public
offerings (IPOs). The companies must get the environmental
all-clear from the SEPA if they want to list, according to a
statement on its website.
"The SEPA will assess the environmental performance of the
companies (seeking to list) and their subsidiaries, and provide
suggestions to the China Securities Regulatory Commission (CSRC),"
the statement said.
"The assessment results will be published on the government
website or in major newspapers for 10 days."
CSRC spokesman Liu Fuhua said: "The CSRC has required companies
to provide environmental reports in their applications for initial
public offerings since 2003. Now, the SEPA has updated some items
and the CSRC will be cooperating with the environmental
agency."
Environmental performance is a minor part of listing rules and
will be of little help in controlling pollution, according to an
environmental expert who declined to be named.
But the expert conceded the updated rule would act as a reminder
to stock investors of the importance of environmental issues.
It is another move by the SEPA to use financial leverage to cut
pollution. The SEPA also plans to work with the insurance
regulatory commission to set up coverage for environmental
accidents. The two departments have begun pilot research in Jilin
and Zhejiang provinces.
And the SEPA sent its first blacklist of 30 polluters to
financial institutions last month.
"The environmental watchdog needs to work hand in hand with
financial policymakers to find a way to beat polluting factories,"
said Pan Yue, vice-minister of the SEPA.
China aims to cut 10 percent of emissions and 20 percent of
energy consumption per unit of GDP from 2006 to 2010.
(China Daily August 21, 2007)
