Why foreign investors should go green
March 29, 2012 | BY
clpstaff &clp articlesGreen technology developers will now benefit from the improved financial viability of domestic energy projects, but only if the correct structure and licensing arrangements are put in place when setting up joint ventures
Energy and natural resources projects are now eligible for bank loans on favourable terms provided they are environmental-friendly, according to The Green Credit Guidelines (绿色信贷指引) issued by the China Banking Regulatory Commission (CBRC) on February 24.
Practitioners told China Law & Practice that in an attempt to receive adequate finance, project companies would now be more motivated to seek advanced green technology. Foreign high-tech companies are likely to have greater opportunities, but finding the correct structure for technology licensing arrangements and protecting of intellectual property under such joint venture structures will be crucial.
“The win-win structure allows joint ventures to have R&D capacities, thus improving foreign licensed technology and allowing such improvements to be licensed back, free of royalties,” said Beijing-based partner Zhang Libin of Broad & Bright.
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