China clarifies carbon-neutral bonds mechanism for green growth
Source: Xinhua | 2021-03-21
The National Association of Financial Market Institutional Investors issued a notice Friday to clarify the carbon-neutral bonds mechanism in a bid to further support the low-carbon transition and green growth in the country.
All funds raised via the carbon-neutral bonds should be used in construction, operations, acquisitions and interest payment of debts of green projects including clean energy, clean transport, sustainable buildings and low-carbon renovation of industrial projects, said the notice.
The projects that receive investment via the carbon-neutral bonds should comply with the catalogue of projects eligible for green bond support or international classifications of green industry and should focus on low-carbon and emission reduction projects.
The notice includes specific provisions on the assessment and selection of projects, management of raised funds, and information disclosure during the validity of the bonds, among others.
Enterprises are encouraged to issue carbon-neutral bonds, particularly medium to long-term products, according to the notice.
The first batch of carbon-neutral bonds worth 6.4 billion yuan (about 983.13 million U.S. dollars) was issued in China's interbank bond market in February, with maturity of two or more years.
China Three Gorges Corporation, China Huaneng Group, State Power Investment Corporation Limited, China Southern Power Grid Company, Yalong River Hydropower Development Company and Sichuan Province Airport Group were the six issuers of the bonds.
China has announced that it will strive to bring carbon dioxide emissions to a peak before 2030 and become carbon-neutral before 2060 to tackle climate change.
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