Roadmap for China: green bond guidelines for the next stage of market growth

The paper assesses the alignment of Chinese green bond guidelines—primarily those from the People's Bank of China (PBoC)—with international practices. It finds strong alignment in the management of proceeds and reporting, but identifies significant divergence in green definitions, particularly regarding the inclusion of fossil fuel projects. The authors recommend adopting a scientific framework for project criteria, implementing a third-party certification model with approved verifiers, and standardising environmental impact reporting to reduce transaction costs for international investors.

• China's green bond guidelines show strong alignment with international practice in most areas, with full alignment already achieved for the management of proceeds and reporting and disclosure.
• The inclusion of fossil fuel-based projects in the PBoC-endorsed definitions is the primary area of divergence from international standards, which may deter international investors who do not consider such projects compliant with green mandates.
• China's green transition requires massive investment, estimated at RMB 2 trillion to 4 trillion (USD 320 billion to 640 billion) annually, with the private sector expected to provide 85% to 90% of this capital.
• The PBoC's guidelines for the management of proceeds are robust, requiring either ring-fencing (special accounts) or earmarking (nominal relationship) to track funds, and requiring unallocated proceeds to be invested in green bonds or high-quality money market instruments.
• Current external reviews in China lack standardisation, as different verifiers use varying procedures and criteria, which increases transaction costs for investors and limits comparability between bonds.
• The document recommends transitioning to a third-party certification model using an 'approved verifier' system to ensure independent checks and lower transaction costs for investors.
• While PBoC requires quarterly reporting on the types of projects funded, it only encourages (rather than requires) reporting on the actual environmental impacts, such as emissions saved.
• The Research Centre for Climate and Energy Finance (RCCEF) estimates that by 2020, China will issue RMB 300 billion (USD 45.6 billion) of green bonds annually.
• The document suggests that future iterations of the project catalogue should use a scientific framework to link project-level criteria directly to China's national environmental and emission reduction targets.

APA

(Lily), W. D., Kidney, S., & Sonerud, B. (2016). Roadmap for China: green bond guidelines for the next stage of market growth. Climate Bonds Initiative. https://www.climatebonds.net/files/drupal-files/files/CBI-IISD-Paper1-Final-01C_A4.pdf

Chicago

(Lily), Weihui Dai, Sean Kidney, and Beate Sonerud. Roadmap for China: green bond guidelines for the next stage of market growth. Climate Bonds Initiative, 2016. https://www.climatebonds.net/files/drupal-files/files/CBI-IISD-Paper1-Final-01C_A4.pdf.

Wikipedia

{{cite report |last1=(Lily) |first1=Weihui Dai |last2=Kidney |first2=Sean |last3=Sonerud |first3=Beate |title=Roadmap for China: green bond guidelines for the next stage of market growth |publisher=Climate Bonds Initiative |date=April 2016 |url=https://www.climatebonds.net/files/drupal-files/files/CBI-IISD-Paper1-Final-01C_A4.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{lily2016roadmap, author = {(Lily), Weihui Dai and Kidney, Sean and Sonerud, Beate}, title = {{Roadmap for China: green bond guidelines for the next stage of market growth}}, institution = {Climate Bonds Initiative}, year = {2016}, month = apr, url = {https://www.climatebonds.net/files/drupal-files/files/CBI-IISD-Paper1-Final-01C_A4.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }