Featured Product

    PBC, NDRC, and CSRC Release Green Bond Endorsed Projects Catalogue

    April 27, 2021

    PBC, the National Development and Reform Commission (NDRC), and the China Securities Regulatory Commission (CSRC) jointly released the "Green Bond Endorsed Projects Catalogue (2021 Edition)." The release of the Catalogue will orient domestic green bonds toward the strategy of green and low-carbon development, better empower domestic green finance development, and boost international cooperation on green finance. The Catalogue will come into effect on July 01, 2021. PBC has also published questions and answers (Q&As) related to the Catalogue 2021.

    The Catalogue 2021 has achieved three breakthroughs.

    • It adopts more scientific and precise definitions on green projects. Carbon-intensive projects such as cleaner use of coal and other fossil fuels are no longer supported and the universally adopted principle of “Do No Significant Harm (DNSH)” is respected so that the constraint of carbon emission reduction is tightened further.
    • It improves the mode of bond issuance and management. The Catalogue unified the criteria for defining green projects among regulatory authorities of green bonds for the first time; effectively reduced the costs of green bond issuance, trading, and management; and elevated the pricing efficiency of the green bond market.
    • The Catalogue provides a stable framework and room for flexibility for domestic green bond development.

    Regarding the rationale of taxonomy in this Catalogue, the Level-II and Level-III Categories are aligned with those of the world’s mainstream taxonomy of green assets, which will help domestic and overseas entities better identify, inquire, and invest in green assets. The Level-IV Categories remain consistent with the Level-III Category of the 2019 Directive Catalogue for Green Industries, so that national key projects on the transition to green and low-carbon development are supported to access list-based financial services. With economic and social development and advancement of national strategy and international cooperation, the sub-levels for green agriculture, sustainable architecture, water conservation, and unconventional water resources may be included in the Level-II and Level-III Categories, to expand the coverage of green bonds. Looking forward, PBC, NDRC, and CSRC will guide and support eligible financial institutions and enterprises to issue green bonds in a bid to underpin eligible green projects. Meanwhile, regulatory authorities of green bonds will continuously step up communication and collaboration, improve relevant financial standards in fighting climate changes, continuously promote uniform fundamental institutions of the green bond market and the convergence of domestic and foreign green bond standards, and better contribute to the achievement of carbon-emission and carbon-neutrality goals.

     

    Effective Date: July 01, 2021

    Keywords: Asia Pacific, China, Banking, Securities, Green Bonds, Climate Change Risk, ESG, Sustainable Finance, CSRC, PBC

    Related Articles
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    EC to Defer Application of SFDR Standards Till July 2022

    The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.

    July 23, 2021 WebPage Regulatory News
    News

    EIOPA Consults on Reporting and Disclosures Under Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.

    July 23, 2021 WebPage Regulatory News
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7295