BEIJING, Nov. 8 (Xinhua) — The green finance market in China will expand on the back of supportive policies and government initiatives as it is an important tool for policymakers to achieve the pledge of net-zero carbon emissions by 2060, Fitch Ratings said in a recent report.
Policies and incentives to develop the market have continued to emerge, with Chinese financial regulators setting policy goals to address climate change through investment and financing tools, the ratings agency noted.
More initiatives are on the horizon as policymakers take the lessons learned from regional green finance pilot schemes to construct a national framework, it added.
The onshore green bond market operates on the basis of local guidelines that differ somewhat from commonly accepted global standards, such as the eligibility of certain projects and the share of proceeds allowed to be allocated to general working capital.
“Guidelines from the People’s Bank of China in 2020 have reduced the gap on eligible projects, and we expect the desire to open the onshore market to foreign investors to drive further standardization,” Fitch said.