Study of China's local government Policy Instruments for Green Bonds
According to the Climate Bonds Initiative, green bond issuance in China soared in 2016 from almost zero to RMB 238 billion (USD 36.2 billion), accounting for 39% of global issuance in 2016. In China, most green bonds are issued by financial institutions. Issuers are based primarly in Shanghai, Beijing and Fuzhou. Bonds issued by other non-financial institutions have supported over 110 projects across 27 provincial administrative regions.
Government regulators and stock exchanges have played a pivotal role in the development of green bonds in China. At the local level, incentives such as policy signals, supporting facilities, financial incentives and recognitions have been offered to encourage the development of green finance. This report identifies the policy instruments at the disposal of local governments based on central government policy framework, and presents a few successful and replicable case studies and international experiences as reference for China’s future development in promoting green bonds.