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China Green Finance Task Force Report: Green Bonds

Country Paper

Authors: Green Finance Task Force   

Published By: UNEP Inquiry    Research Bureau of the People's Bank of China   

Date: Apr 2015

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China Green Finance Task Force Report: Green Bonds

Green bonds provide a potential source of long-term funding for green loans which reduces the risk of maturity mismatch. This paper recommends that China should commence the pilot issuance of green bonds at the earliest possible date to support the green lending business of banks. Specific recommendations are:

  • Create a clear standard to define the scope of investment for green bonds
  • Create incentivising policies, such as a variation on loan-deposit ratio requirements or a preferential risk weighting, or make interest on green bonds tax-free
  • Create a tracking and evaluation system
  • Simplify review and approval procedures

[NB: This paper is one chapter of the broader report “Establishing China’s Green Financial System” developed by the China Green Finance Task Force, which was convened by the Research Bureau of the People’s Bank of China together with the UNEP Inquiry]

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