China Green Finance Policy Analysis Report 2021

The report analyzes the 2021 Chinese green bond market, which saw a sharp rebound with USD 109.4bn in total issuance. It highlights the role of top-down policy guidance, such as the Green Bond Endorsed Project Catalogue (2021 Edition), in standardizing the market and aligning it with international principles. The analysis finds a positive correlation between local policy efficacy scores and the volume of green bond issuance, particularly in economically developed regions like the Yangtze and Pearl River Deltas. However, stakeholders identify challenges including inadequate information disclosure and a lack of issuer experience in identifying green assets. The report recommends strengthening disclosure standards, developing transition finance frameworks, and expanding innovative products like sustainability-linked bonds to support high-emitting sectors.

• China's green bond market experienced a significant recovery in 2021, with total issuance reaching USD 109.4bn. Of this, USD 68bn complied with the Climate Bonds Green Bond Database rules, making China the second-largest country source of green bonds globally in 2021, trailing only the USA at USD 82bn.
• The release of the Green Bond Endorsed Project Catalogue (2021 Edition) served as a critical step toward market standardization by unifying domestic standards across different regulators and incorporating the international "do no significant harm" principle. It also aligned China with international standards by removing fossil-energy-related projects, such as clean coal utilization and ultra-low emission transformation of coal-fired power plants.
• Renewable energy was the dominant use of proceeds (UoP) for Chinese green bonds in 2021, accounting for 61% of the total (USD 41.3bn), which the report notes supports China's carbon neutrality objectives.
• There is a positive correlation between the intensity of local government policy incentives and the volume of green bond issuance. Regions with high policy efficacy scores, specifically Zhejiang, Guangdong, and Jiangsu provinces, exhibit more mature green finance environments and larger bond markets.
• The efficacy of green finance policies is limited in regions with immature economic development and poor credit conditions, as these factors hinder the ability of issuers to deliver bonds with required credit quality regardless of policy stimulus.
• Market stakeholders report that information disclosure remains inadequate, with many issuers using general or conceptual expressions rather than substantive data. This lack of standardized, operable disclosure guidelines hampers the ability of investors to make accurate judgments.

APA

Long, A., Wu, V., Xu, X., & Xie, W. (2022). China Green Finance Policy Analysis Report 2021. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/China-Green-Finance-Policy-Analysis-Report-2021.pdf

Chicago

Long, Arthur, Valentina Wu, Xiaoyun Xu, and Wenhong Xie. China Green Finance Policy Analysis Report 2021. Climate Bonds Initiative, 2022. https://www.climatebonds.net/files/documents/publications/China-Green-Finance-Policy-Analysis-Report-2021.pdf.

Wikipedia

{{cite report |last1=Long |first1=Arthur |last2=Wu |first2=Valentina |last3=Xu |first3=Xiaoyun |last4=Xie |first4=Wenhong |title=China Green Finance Policy Analysis Report 2021 |publisher=Climate Bonds Initiative |date=April 2022 |url=https://www.climatebonds.net/files/documents/publications/China-Green-Finance-Policy-Analysis-Report-2021.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{long2022china, author = {Long, Arthur and Wu, Valentina and Xu, Xiaoyun and Xie, Wenhong}, title = {{China Green Finance Policy Analysis Report 2021}}, institution = {Climate Bonds Initiative}, year = {2022}, month = apr, url = {https://www.climatebonds.net/files/documents/publications/China-Green-Finance-Policy-Analysis-Report-2021.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }