A Legal Study On Emission Right As Mortgage Loan

The government solve environmental problem have two ways, one is environmental administrative method, the other way is environmental economic method. At present, the reason why we facing very serious environmental problem is that we reliance on administrative method too much. Emission trading is a typical environmental economic method. this system With a strong market characteristics, Emission trading make the government administration more efficient, the most important thing is that this system urge the enterprise themselves save energy and reduce emissions. Therefore, as an innovation method in environmental protection, more and more provinces adopted this system.However, affected by transaction time, price or cost, emission trading suffer a lot of problem, the enterprise should pay money to get emission right, while when they need production capital, emission right can’t help them. In order to solve this problem, Jia xing city of Zhe jiang province launch emission right as mortgage. Because this system solves the enterprise’s finance problem, and makes the society realized that the environmental resources is valuable, the province which adopted emission trading start use emission right as mortgage. These province and the State Council promulgation many acts to make sure this system is developing on the right way.That emission right as mortgage is the development of emission trading in our country, this system is a part of green credit as well. As an innovation method, there is no mature theory or general practice in it. If we want to make this system implemented throughout the country, we must response to the following questions. First, According to the Property law and the Guarantee law, only property is allowed by law can be used to mortgage. However, emission right is not allowed by exciting law. Secondly, we don’t know what is the nature of emission right, so we can’t decide what is the proper form to emission right mortgage. thirdly, In order to achieve the purpose of publicity, almost every province who adopted emission right to mortgage regulations that enterprise and bank must carry on registration on mortgage, while what the registration mean, these province can’t give us an easy understanding. Finally, considering the bank maybe don’t trust the emission right, therefore, government promise that if the enterprise can’t afford the money borrowed from the bank, government will pay it, but according to the law,the government can’t be a guarantee. If we can solve all of these questions, we think emission right as mortgage can be very useful to protect the environment.