The Green bond support project catalogue
As a result of the different focuses between domestic and international guidelines in guiding green investment and financing activities, there are differences in the criteria for identifying green bonds between China and international standards. But we can expect technical barriers will be solved according to the publishing of “The Green bond support project catalogue (consultation paper)” in 2020.
The 2020 version of the green bond catalogue divides green projects into six areas: energy conservation and environmental protection industry, clean production industry, clean energy industry, ecological environment industry, green infrastructure upgrade, and green service industry. The 2020 version of the catalogue has a total of 6 first-level catalogues, 25 second-level catalogues, 48 third-level catalogues, and 204 fourth-level catalogues.
We can see three major goals this catalogue may achieve:
- Integrate green bond standards with international standards. Previously, China included “clean coal utilization” into the category of clean energy. The 2020 version deleted a number of items directly related to fossil fuel in the catalogue. Excluding the clean utilization of coal can improve the internationalization of domestic green bond support project standards, attract more international funds to participate in China’s green bond market.
- More green industries and green-related projects are included in the new version of the catalogue, which means that more green projects will be labelled “green” and the scale of the green bond market will expand.
- The 2020 version of the green bond catalogue provides a detailed introduction to the green bond identification standards and third-party assessments, which can more effectively prevent the “greenwashing”.