China to establish 'green insurance' policy

The State Environmental Protection Agency, China’s environmental watchdog, will set up a liability insurance system in order to hold industrial polluters accountable, the South China Morning Post reported. The "Green Insurance" policy, supported by the China Insurance Regulatory Commission, will force heavy polluters to pay cleanup costs for the environmental damage they cause. Under the scheme, polluting enterprises would be required to buy policies for their projects against the risk of possible environmental pollution. Insurance companies will be called to compensate pollution victims following accidents. The policy will target enterprises dealing with toxic chemicals and dangerous waste as well as petrochemical factories. A pilot program is expected to be launched this year in several coastal cities.