Heavily polluting industries in China will be forced to participate in a compulsory insurance program that will be run by the country. The industries will be participating in the program to ensure that they can adequately provide compensation for damages caused due to pollution. The announcement was made by the Chinese government on February 21, 2013.


In recent times, pollution has become a core concern for the stability of the ruling communist party, due to the public anger and protests that it generates. Moreover, such issues cannot be hidden from public view due to its intensity.

The government has also mentioned the type of companies which must participate in the program include those dealing with smelting and mining, leather goods industries, lead battery manufacturers and chemical factories. The information on the participation of companies was revealed in a joint statement by the Environment Ministry and the China Insurance Regulatory Commission.

The statement added that petrochemical companies and firms which release hazardous chemicals may also be encouraged to participate in the program. The companies would be allocated with Special environmental protection funds to take out insurance. The statement also said that these companies would  be given priority for bank lending. The insurance scheme has plenty of rules and is aimed at cleaning up China’s dirty environment.