China: Green Insurance System

China is beginning a trial phase of requiring insurance for companies that produce or use high- risk chemical products. Companies that have been prone to accidents recently will be targeted. This measure is intended to help victims of polluting industries receive timely and appropriate compensation. The insurance would prevent companies from going bankrupt after a serious environmental accident, but still give them incentive to lower their insurance costs by increasing their safety standards.

Date Implemented: 2008 trial period. Full scale implementation by 2015

Status: In Force; Trial period

References: http://english.gov.cn/2008-02/18/content_892569.htm