China: Financing the Green transformation
- China is set to undertake extensive investments to decarbonise its economy and energy system to achieve peak carbon emissions by 2030 and carbon neutrality by 2060
- The green bond market was launched in 2016 to mobilise private sector capital, in conjunction with public resources, to facilitate the upcoming green transformation
- China has been among the world’s largest issuers of green bonds since 2016 and is the world’s second largest market by total bonds outstanding
- The attractiveness of this market is not limited to its size, but also the diversity and quality of the investable green projects and bond issuers
- China has made significant strides to close the gap between local and international green bond standards. While there are still some remaining discrepancies, we believe these can be easily identified and rectified and should not stand as major hurdles for global investors to engage in this market
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