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SHANGHAI, July 28 (Reuters) – China will release principles for green bonds to establish unified criteria for domestic issuers, rushing to set standards in a growing market in line with international norms, the Securities reported on Thursday. Official times.
The country aims to bring its emissions to a peak before 2030 and become carbon neutral by 2060, fueling its green bond market to become one of the largest in the world.
Green financial bonds, green debt financing instruments and green corporate bonds will apply the new principles, while corporate bonds – mainly issued by public enterprises (PEs) – will be excluded, according to the report.
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Currently, Chinese regulators have different definitions of green bonds, and standards for various products are different, such as product usage and disclosure requirements, according to China International Capital Corporation (CICC).
Moreover, some domestic green bonds do not comply with international standards, which makes them unrecognized by international investors.
China issued 400.6 billion yuan ($59.4 billion) of green bonds and asset-backed securities in the first half of 2022, jumping 64% from a year earlier, bringing the balance total to 1.42 trillion yuan ($210.6 billion), the newspaper reports.
The principles will fully comply with relevant international standards and establish ground rules for green bond issuers and related institutions according to national conditions, the newspaper said, citing people familiar with the matter.
The principles will continue to promote convergence between national and international green bond market standards, he added.
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Reporting by Jason Xue and Brenda Goh; edited by Uttaresh.V
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