On May 29, 2020, the People’s Bank of China, the National Development and Reform Commission, and the China Securities Regulatory Commission solicited public opinions on the drafting of the “Catalogue of Green Bond Endorsed Projects (2020 Edition)”. The deadline for feedback is August 6, 2020.
The “Catalogue of Green Bond Endorsed Projects (2015 Edition)” and the “Green Bond Issuance Guidelines” issued in December 2015 played an important role in defining the scope of projects supported by green bond and regulating the development of the domestic green bond market. However, with the continuous enrichment of China’s green development connotation and the updating of industrial policies and related technical standards, the definition and technical requirements of the scope of green bond endorsed projects in above two documents can no longer meet the needs of green development and ecological civilisation construction. On a national level, with the rapid development of the domestic green bond market, it is necessary to unify the scope of the two green bond endorsed projects as soon as possible, and gradually achieve conformity of the documents with internationally accepted standards and regulations.
The People’s Bank of China, together with the Development and Reform Commission, the Ministry of Finance, the Ministry of Ecology and Environment, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and other business authorities and relevant market institutions, have formed the ” Catalogue of Green Bond Endorsed Projects (2020 Edition)” after in-depth research, demonstration, modification and improvement. In the formulation process, it insists on the coherence with the “Catalogue of Green Industry Guidance (2019 Edition)”, “Catalogue of Green Bond Endorsed Projects (2015 Edition)” and “Green Bond Issuance Guidelines” and other policy documents. Combining with China’s economic and social development stage and factors such as industrial conditions and ecological and environmental characteristics, the projects that meet the support of green bonds have been scientifically defined and selected, so as to enhance the greenness of China’s green bonds. Meanwhile, by drawing on the mainstream standards of international green projects and green asset classification, the level of internationalisation of the standards will be further improved so as to strengthen international investors’ confidence in China’s green bond market investment, thereby attracting more foreign investment in China’s green finance sector.
The new version of the Catalogue has made in-depth and detailed classifications, following the structure of the ” Catalogue of Green Industry Guidance (2019 Edition)”, and the classification of the six major areas remains consistent. Among them, the first-level category includes six categories: energy conservation and environmental protection industry, clean production industry, clean energy industry, ecological and environmental industry, green upgrade of infrastructure and green service. The second and third – level categories continue to use the basic ideas of the ” Catalogue of Green Bond Endorsed Project (2015 Edition)”, while integrating ideas from the ” Catalogue of Green Industry Guidance (2019 Edition)” related to sustainable construction, water conservation and unconventional water use. It has also expanded the scope of endorsed projects in the fields of agriculture and ecological protection, and the manufacturing of green equipment. The fourth-level category is consistent with the name of the third-level category of the ” Catalogue of Green Industry Guidance (2019 Edition)”, and basically covers the relevant green industries and projects therein. It is worth mentioning that the new version of the Catalogue excludes the relevant categories of the clean use of fossil energy from the fourth-level category, which will empower China with rights and influence on the international stage in the field of green bond standards, and promote the internationalisation of related standards.
The new Catalogue is committed to further standardising the domestic green bond market, giving full play to the positive role of green finance in adjusting structure, transforming methods, promoting the construction of ecological civilisation, and pushing sustainable economic development. The new Catalogue is of paramount importance to the sustainable economic and social development, and industrial green transformation and upgrading.
