Policy Brief: How will financial regulations in China’s green bond market affect green finance policies?

SUMMARY

In 2018, China’s green bond market witnessed continued and stable growth. The Green Bond Standard Committee was established in December 2018 under the guidance of the People’s Bank of China. As China’s first self regulatory and coordination mechanism for green bonds, it is expected to play an important role in 2019.

Motivating issuers and investors to scale the market for green bonds remains a key challenge for China’s green bond market in 2019.

BACKGROUND

China has emerged as one of the leading players in the global green bond market, with a higher proportion of overall labelled Chinese green bond issuance aligned to international definitions. Chinese issuance in 2018 topped USD30bn, and Industrial Bank became the second largest issuer globally with USD9.6bn. Regulators continued to improve market integrity through a series of measures to stimulate market growth through policy tools and regulatory reforms. As China’s first self-regulatory mechanism for green bonds, the Committee is expected to play an important role in the harmonisation of green bond standards and market access of green bond verifiers. In addition, the first green bond from a Local Government Financing Vehicle (LGFV) was issued in early 2017, sparking a growing number of LGFV green bonds entering the market. Local governments have since been gearing up to support green finance development locally across China.

CONNECT

Join us at the AVPN Conference 2019 to connect with Chinese social entrepreneurs, investors and foundations contributing to the social investment ecosystem in China!

LEARN

For further information on China’s responsible investment trends, click here.

LEAD

Many local governments are now adopting green finance policies. Find out more.

Connect

Join us at the AVPN Conference 2019 to connect with Chinese social entrepreneurs, investors and policymakers!

Learn

What are governments in Asia doing to enhance their green bond market? Find out more information here. For further information on China's responsible investment trends, click here.

Lead

More local governments are adopting green finance policies today. In 2018, the number of policies implemented in provincial, prefectural and municipal administrative regions increased by 68.6% year-on-year. Find out more.