Green Bond Guidelines Issued by China's National Development and Reform Commission (NDRC)

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China's National Development and Reform Commission (NDRC), the regulator responsible for corporate bond issuance, has issued Guidelines on the Issuance of Green Bonds. The Guidelines, aimed at non-listed companies, clarify what projects qualify as green. The Guidelines include a list of qualifying green projects that should be supported by green corporate bonds and proposals for policy incentives for green bonds. It also lays out some requirements for allocation of proceeds during the bond term.
 
Areas covered by the Guidelines are:
  • Green urbanisation - energy saving and transport
  • Technology improvement for energy saving and emission reduction
  • Energy saving and environmental protection industry
  • Clean and efficient use of energy
  • New energy - hydropower, wind, nuclear, solar, bioenergy, geothermal, shallow geothermal energy, marine, and air energy
  • Low-carbon industry projects and demonstration projects
  • Pollution prevention and control
  • Water saving and unconventional water use
  • Ecological agriculture and forestry
  • Ecological civilisation demonstration projects
  • Circular economy
The Guidelines are complementary with the PBoC Green Bond Principles, as the regulators cover different areas of the bond market.