The chief economist of the Research Bureau of the People’s Bank of China, Mr Ma Jun, was recently quoted as saying that he expects the country’s green bond market to total RMB300 billion (~$46 billion) through the end of this year, according to reports.
The comments aren’t unexpected, as the country’s most recent 5-year plan includes plans for the expansion of China’s green bond market.
“Based on China’s national conditions, China intends to develop the rules using the government’s financial department (rather than private sectors),” commented Mr Jun. He also stated that the procedure was expected to be completed within only the next couple of months.
Following the creation and provision of legal instruments for the issuance of green bonds, China Industrial Bank and Shanghai Pudong Development Bank both applied (separately, of course) for the issuance of around $7.7 billion of green bonds a few months ago, in January 2016. Around $4.6 billion of these green bonds have been issued to date.
A number of other banks have submitted applications as well, with Qingdao Bank having been granted $1.238 billion in green bonds a bit over a month ago, in February.
As it stands, there is currently only one organization providing certification services for green bonds evaluation — the Research Center of Climate and Energy Financing (RCCEF) at China’s Central University of Finance and Economics. Considerably more third-party certifiers will be needed if the green bonds market in the country is going to grow rapidly.
In related news:
- BRICS Development Bank Plans To Issue Green Bonds Worth Up To $384 Million
- Record $41.8 Billion Of Labelled Green Bonds Issued In 2015
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