How to Issue a Green Bond in China

This guide by the International Institute for Sustainable Development provides a step-by-step framework for issuing green bonds in China. It outlines the requirements for qualifying green assets, the necessity of independent verification, the processes for tracking and reporting proceeds, and the specific regulatory bodies responsible for approving different types of bonds. The document emphasizes that any bond type can be 'green' if the proceeds are earmarked for qualifying environmental projects, and it highlights the potential for re-labelling existing bonds in China that already fund green assets.

• Any type of bond can be classified as a Green Bond provided the assets qualify and the proceeds are directed toward green assets or projects. Issuers must disclose these assets and projects and provide at least annual reports on their green credentials.
• The approval process for bonds in China depends on the specific type of bond: the Ministry of Finance handles local government bonds, the National Development and Reform Commission (NDRC) approves enterprise bonds, the China Securities Regulatory Commission (CSRC) manages corporate bonds, the National Association of Financial Markets Institutional Investors (NAFMII) handles registration for medium-term notes and commercial paper, and securities exchanges manage registration for SME private placement bonds.
• Qualifying green projects include a wide range of categories: green buildings (new and existing), industrial efficiency (energy and water conservation, circular economy), clean transport (rail, electric public transport, urban rail transit), clean water and utilities (drinking water, irrigation, river revitalisation), storm adaptation (flood/drought prevention), waste management (waste-to-energy, wastewater treatment), agriculture and bioenergy (organic production, biomass power), forestry (afforestation), and renewable energy (wind, solar, geothermal, tidal, and smart grid projects).
• Proceeds of a Green Bond can be used for new capital expenditure or existing assets, such as re-financing an operating solar energy plant. For new capital investments, funds must be fully deployed within a maximum of two years. Financial institutions may also use books of green loans as qualifying assets.
• The document identifies US$164bn of outstanding bonds in China that fund green assets and could be re-labelled as green bonds if reporting and verification procedures are established. The largest categories of these bonds are rail assets and renewable energy, specifically solar power projects.
• To maintain green bond status, issuers must implement systems to segregate proceeds and ensure the nominal value of the asset pool remains equal to or greater than the bond amount. They must provide annual confirmation via an auditor's letter or an authorized officer's signature and report on the environmental impact of the investments.

APA

International Institute for Sustainable Development (n.d.). How to Issue a Green Bond in China. https://www.iisd.org/system/files/publications/how-to-issue-green-bond-china-en.pdf

Chicago

International Institute for Sustainable Development. How to Issue a Green Bond in China. n.d. https://www.iisd.org/system/files/publications/how-to-issue-green-bond-china-en.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=How to Issue a Green Bond in China |url=https://www.iisd.org/system/files/publications/how-to-issue-green-bond-china-en.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopmentndhow, author = {{International Institute for Sustainable Development}}, title = {{How to Issue a Green Bond in China }}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/how-to-issue-green-bond-china-en.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }