Photo taken on Dec. 8, 2021 shows wind turbines at Changma wind farm in Yumen City, northwest China's Gansu Province.
BEIJING, Aug. 10 (Xinhua) -- Green bond issuance accelerated in China this year, with the aggregate amount by Monday at 1.03 trillion yuan, reported Securities Daily on Tuesday.
The report citing data from Wind said that the green bond issues figure marked an about 53 percent rise from the same period of last year, pointing to more vitalized green investment in China.
Generally, green projects represented by new energy projects involve investment of large amount and long duration for investment recovering thus their sustainable development requires smooth financing channels of varied types.
To spur investment and financing in green industries, China's Ministry of Industry and Information Technology (MIIT) released the green industrial development plan for the 14th Five-Year Plan period (2021-2025) in December 2021, to scale up related fiscal and financial support, optimize green finance standards system and information disclosure mechanisms and encourage green enterprises to go public and refinance to reduce financing costs.
Under the policy supports, enterprises in green energy, ecology protection and environment treatment industries reported huge amount of financing via public listing and refinancing as well.
"Green channels" were also set up by China's two stock exchanges in Shanghai and Shenzhen to foster green financing including green corporate bond issuance.
By the end of June, nearly 500 batches of green bonds of 505 billion yuan were issued on China's exchange bond market, according to the report.
Alongside the rapid growth of green bonds this year, Green Bond Standards Committee unveiled on July 29 the China Green Bond Principles to promote standardization and high-quality development of green bond market in China. The principles, which are self-regulated frameworks for stakeholders' reference to best practice of the green bond market, specify the definition of green bond and four core aspects such as use of proceeds, project appraisal and selection, proceeds management and information disclosure within the duration of green bonds.
Moreover, the principles clearly provide that proceeds of green bonds should be fully used to fund green projects and the principles will be applied to green bond products both on China's interbank bond market and exchange bond market, said the report.
Industry experts held that green investment in China is expected to hail a new round of fast growth along with the improvement of the green standards system. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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