BEIJING, Sept. 26 (Xinhua) -- China Green Bond Standard Committee (CGBSC) issued on September 24 detailed operation rules and related supportive rules for green bond appraisal and certification institutions, reported Xinhua-run Xinhua Finance recently.
CGBSC unveiled the rules to optimize the top-down design and systemic planning for green bond standards so as to boost high-quality development of green bonds by regulating practices of green bond appraisal and certification institutions and cultivating a batch of independent, professional and reputed third party institutions.
To foster professional, standardized and independent business practices of green bond appraisal and certification institutions, CGBSC requires in the above-mentioned operation rules and related supportive rules multi-dimension qualification of their business practice capabilities, introducing of diversified institutions participating in the appraisal process of green bonds and will enhance inspection of business practicing of these institutions to foster standardized and rule-based business practices of them.
Green bond appraisal and certification institutions, regarded widely as the gatekeepers of green bonds, are encouraged to appraise whether the use of proceeds of green bonds is in line with the related requirements and calculate the expected and factual environmental benefits to showcase their green properties.
In global bond market, many relatively mature green bond appraisal and certification institutions have got acknowledgement from investors with their endorsement of green bonds.
In China, there are nearly 20 institutions that have carried out green bond appraisal and certification business.
Since 2015 when green bonds debuted, China's green bond market has undergone rapid development. By the end of August 2021, a total of 992 batches of green bonds including green asset backed securities were issued, involving gross issues of around 1.5 trillion yuan, ranking the second in the world.
CGBSC is a mechanism for self-discipline-based regulation and coordination of green bond market in China. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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