Bonn (People’s Daily) – Paving the way for future eco-investment opportunities, China’s Green Finance Committee (GFC) and the European Investment Bank (EIB) together issued a joint White Paper on November 11.

“The report provides a basis for future international cooperation on improving green finance definitions and standards with a view to facilitating cross-border green capital flows,” said Yin Yong, Deputy Governor of the People’s Bank of China (PBoC).

The initiative release coincides with the ongoing Climate Change Summit (COP 23) in Bonn, Germany.  Highlights from the joint-study were delivered to climate experts and green bond community representatives at the summit by Dr. Ma Jun, Special Advisor to PBoC Governor and Chairman of China’s GFC, and EIB Vice-President Jonathan Taylor.

“Development of green finance is a priority for China, and China is now the world’s largest green bond market. This year’s global green bond issuance will likely expand by about 40%, and may continue to grow rapidly in the many years to come. However, the lack of clear definitions in some markets and the lack of comparability of different definitions in different markets are barriers to future growth of the green finance market and green capital flows, so efforts need to be made to enhance the comparability and consistency between different standards. This White Paper reflects on the strategic partnership between China and the European Union to promote international cooperation in this area.” said Jun.

Echoing Jun’s remarks, Taylor said, “Strengthening investment in green finance is essential to support sustainable growth, improve environmental protection, and implement the Paris Agreement. The Green Finance White Paper published today will strengthen investor confidence and enhance transparency of green finance, and follows months of technical assessment and market consultation by world-class experts.”

The study was conducted with active participants and stakeholders. It includes definitions and objectives, compares constraints and parameters while identifying ways to improve comparability of disclosure and reporting.

In March 2017, PBoC and EIB established a joint green finance initiative to translate green definitions between China and the European market.

For the better part of this year, experts have tried to reduce green bond issue expenses while tracking and comparing standards of investments eligible for green bond financing. 

Established in 2015, GFC is a non-profit organization that has since acquired 190 member institutions.   

GFC members oversee a financial portfolio valued at RMB 120 trillion, roughly 70% of China’s total financial industry assets.

As pioneers in Green Bond the market, EIB remains the world’s largest climate-related investment lender. The financial institution has been financing projects in China since 1995.

EIB’s issuance of Climate Awareness Bonds in 2017 has already reached a record EUR 4.3 billion.

Last year, EIB Group provided EUR 84 billion in global financial investments, including EUR 19.6 billion in climate-related funding.