The country aims to be carbon neutral by 2060, a push that’s fueled a 248% jump in sales of green notes locally and offshore this year to $23 billion, a record for this point in a year.
But only about half or less of Chinese green securities meet global standards for what counts as green, according to Xie Wenhong, China program manager at Climate Bonds Initiative.
Guidelines set by China’s National Development and Reform Commission, the top economic planning body, allow up to 50% of green bond proceeds to be used to repay bank loans and replenish working capital.
In addition to the NDRC regulations, China Securities Regulatory Commission has separate guidelines for corporate green securities.