Various important organizations, including the state council, the national development and reform commission (NDRC), and Chinas association of interbank market dealers, released guidelines to direct financial institutes on how to issue green bonds. Based on Chinas national conditions, China intends to develop the rules using the governments financial department (not private sectors), said Jun, who confirmed that the procedure should be completed over the next few months.
After legal instruments to obtain green bonds became available, China Industrial Bank and Shanghai Pudong Development Bank applied separately for the issuance of USD7.7bn worth of green bonds in January, USD4.6bn of which have already been issued. Qingdao Bank were granted with USD1.238bn green bonds in February, with applications from other banks said to be queuing for approval.
To develop the green bonds market, more third party certifiers are required to join the scheme. There is currently only one organization, the Research Center of Climate and Energy Financing (RCCEF) at Chinas Central University of Finance and Economics that can provide the certification service for green bonds evaluation, which is far below what is required.
Meanwhile, Jun along with some other Chinese financial experts hope that the green bonds might obtain the same duty-free benefits that treasury bonds enjoy, which would greatly encourage the issuance of the bonds. This however, is considered to be a tough task, as the potential benefits are currently under consideration within the relevant governmental departments.
It is essential for the success of the green bonds market that it receives backing from high levels of the government, which it looks as if it may be obtaining. On a summit forum, governor of PBoC Zhou Xiaochuan said clearly that the Peoples Bank of China (PBoC) will work closely with other governmental departments to support the development of Chinas green financing market.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
Popular content
Share
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.