With the support of HSBC, the Climate Bonds Initiative (Climate Bonds) co-produced, with the China Central Depository & Clearing Company (CCDC Research), the sixth report under the China Green Bond Market series.

2021 was the first year after China announced its dual targets to achieve a peak in carbon emissions by 2030 and carbon neutrality by 2060. It was also the starting year of the nation’s 14th Five-Year Plan period (2021-2025). The country’s action to expedite carbon emission reduction was reflected in the vigorous expansion of its green bond market during the year. Annual issuance of green bonds by Climate Bonds definition made a record high to USD68.2 billion (RMB440.1 billion), up 186 per cent from a year earlier. At the end of 2021, cumulative issuance amounted to nearly USD200 billion (RMB1.3 trillion). China ranked the second largest green bond market in the world by both accounts.

The growth momentum seen in the 2021 green bond market in China is expected to continue, with the support of further reform in green financial policy and surging demand from investors. Further refinements in green financial policy are expected in a number of areas covering standards, disclosure, incentives, products, and international cooperation, which could further increase the deployment of green finance in China and thereby support the achievement of the country’s climate goals.

The report presents the development of China’s green bond market during 2021, describing its shape and size and reviewing key trends. In addition, the report discusses the outlook for the market, highlighting drivers that could further stimulate its growth.

Read the full report here.


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