China issues more than one trillion yuan of green bonds after 2016

Since 2016, China has issued 1.1 trillion green bonds at home and abroad, said Ma Jun, director of the Green Finance Committee, China Society for Finance and Banking, at the Session on Green and Sustainable Finance of the Asian Financial Forum (AFF) in Hong Kong on 14th January 2020.

Since 2016, China has issued 1.1 trillion green bonds at home and abroad, said Ma Jun, director of the Green Finance Committee, China Society for Finance and Banking, at the Session on Green and Sustainable Finance of the Asian Financial Forum (AFF) in Hong Kong on 14th January 2020.

Based on the preliminary analysis, China’s green bond issuance at home and abroad reached more than 350 billion yuan in 2019, an increase of nearly 30 percent over 2018.

The funds raised through these green bonds support a large number of projects on clean energy, environmental protection, energy conservation, green transportation and green building.

Ma Jun said that Europe is about to launch sustainable financial classification standards and green bond standards, while China already has green bonds and green industry standards.

After the European standards are issued, China and Europe, as the two largest green financial markets, will launch cooperation on the harmonization of China-EU green bond standards.

He believes that in the short term, a feasible direction for standardization is to regard the overlap between Chinese and European green debt standards as a “common standard”, which can be used by Chinese institutions to issue green bonds in Europe. European institutions can use this common standard to issue green panda bonds in China.

In the long run, China and the Europe can gradually amend their respective standards in order to achieve convergence.

Ma Jun stressed that the harmonization of China-EU standards will help to reduce the certification cost of cross-border green investment and financing, avoid market signal confusion and green risk caused by multiple standards, and enhance investors’ confidence in the green bond market. and provide an important groundwork for the harmonization of global green financial standards.

Ma Jun also briefed the forum on the progress of the Belt and Road Initiative’s Green Investment Principle (GIP) jointly sponsored by China and United Kingdom.

So far, 35 global institutions from 14 countries and regions have officially signed the GIP, including BNP Paribas and Societe Generale, which signed GIP in November last year.

In addition to launching three working groups, GIP is also planning to build a green project pool for Belt and Road Initiative, some of which will come from Hong Kong Trade Development Council.

Ma Jun also attended the signing ceremony of the cooperation agreement on the green project pool held by AFF’s Green and Sustainable Finance session.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/06/05/china-issues-more-than-one-trillion-yuan-of-green-bonds-after-2016/.

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