It comes days before China hosts the G20 summit in Hangzhou this weekend, where ‘green finance’ is included as a major policy theme for the first time.
The guidelines have been jointly issued by the PBOC, the Ministry of Finance, the National Development and Reform Commission, the Ministry of Environmental Protection, China Banking Regulatory Commission, China Securities Regulatory Commission, and China Insurance Regulatory Commission.
“Promote the establishment of China’s green financial system”
The guidelines also spell out the important role of the securities market in financing green investment, the requirement to unify the domestic green bond standards, and support qualified green companies to raise funds via IPOs and secondary placements.
Also highlighted are the green bond indices, green equity indices and related products, and the setting up of a mandatory environmental information disclosure system for listed companies and bond issuers.
The guidelines also call for the development of green insurance and trading of environmental rights, as well as the drafting of laws for introducing a mandatory pollution liability insurance system. Further, there is support for the development of carbon finance products, and promotion of the development of markets for emissions rights, energy rights, water rights and other environmental rights.