MENGDI YUE AND CHRISTOPH NEDOPIL | 40 MINUTE READ |

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1. Introduction

In 2024, green finance in China saw significant progress across several areas. Early in the year, the CPC Central Committee and the State Council issued the Opinions on Comprehensively Promoting the Construction of a Beautiful China,[1] laying out key strategies for achieving a green, low-carbon economy across all sectors. In particular, it advocates the robust development of green financial systems, including green bond issuance, expansion of the national carbon market, climate finance innovation, and ESG information disclosure. It also supports creating standards and certifications for green products and a “carbon inclusive” mechanism for public participation.

In response to this high-level directive, four ministries (PBOC, MEE, NFRA and CSRC) jointly released Guiding Opinions on Doing a Good Job in the Five Major Financial Sectors in the Banking and Insurance Sectors[2] in May 2024, underscoring the role of green finance in resource allocation, risk management and market pricing in support of building a “Beautiful China”.

With continuous support through a favourable policy environment, China’s green finance ecosystem evolved through strategic policy interventions, innovative financial products, and enhanced regulatory frameworks in 2024. Notable developments include the finalisation of the Green and Low-Carbon Transition Industry Guidance Catalogue, advancements in green insurance and taxonomy, the establishment of more robust and unified disclosure requirements for corporations, the re-launch of the China Carbon Emission Reduction (CCER) market, and the introduction of national carbon footprint management standards.

The growth of green finance instruments has been mixed in 2024: Green loans maintained strong growth, while green bond issuances continued to decline; transition-related bonds and green insurance grew significantly compared with 2023, but were still small in scale; green funds had a strong rebound from 2023.

Building on the previous reports for 2022-23[3] and 2023-24,[4] this brief analyses China’s green finance policies in 2024, identifies key trends and recommends actions to scale green finance further. It is written as a snapshot of key developments and uses specific examples to understand China’s green finance trends and directions. It is by no means a complete guide to Chinese green finance and its developments.

2. Progress on China’s green finance policies in 2024

The following sections highlight and analyse recent green finance policy developments in China based on the five pillars[5] for green finance development promulgated by PBoC since 2021:

  1. Improve the green finance standard system;
  2. Strengthen regulation and disclosure requirements;
  3. Enhance the incentive and restraint mechanisms;
  4. Enrich the product and market system; and
  5. Expand international cooperation and lead the setting of international standards for green finance.

2.1 Standard system

Progress in standard system were observed in the insurance industry, green taxonomy, transition finance and biodiversity finance.

Green Taxonomy

Following a public consultation version revealed in 2023, a coalition of ministries led by NDRC finalised and published the Green and Low-Carbon Transition Industry Guidance Catalogue (2024 version),[6] which went into effect in February 2024. Compared with the 2019 version, it highlights more of “low-carbon” than “environmental protection” and includes traditional industries that need resources for a green transition.

For example, the 2024 Catalogue includes industries working on carbon capture, utilisation, and storage (CCUS), substitutes for ozone-depleting substances (ODS), and emissions reduction industrial processes. In the section on “clean and low-carbon transition of traditional energies”, besides “clean production and utilisation of coal”, which were included in previous versions, the 2024 Catalogue also adds the low-carbon transformation of coal power generating units. The Catalogue serves as a reference, but not a binding standard, for governments, companies and financial institutions (e.g., for green loans).

In May 2024, Hong Kong Monetary Authority published its first Hong Kong Taxonomy for Sustainable Finance[7] that covers 12 economic activities across four industries—power generation, transportation, construction, sewage and waste treatment. It is highly aligned with Common Ground Taxonomy (CGT), China’s Green Bond Endorsed Project Catalogue, and the EU Sustainable Finance Taxonomy. The interoperability attracts cross-border green finance and strengthens Hong Kong’s position to channel international capital into sustainable projects.

Green Insurance

Following the Green Insurance Classification Guidelines published in 2023, in April 2024, the National Financial Regulation Administration (NFRA) issued Guiding Opinions on Promoting the High-quality Development of Green Insurance.[8]

For underwriting, the Guiding Opinions lists 9 key areas for green insurance coverage: (climate-related) natural disasters, low-carbon technology innovation, green energy and the green transition of traditional energy, restoration activities that benefit the carbon sink, products that benefit public low-carbon lifestyle (such as EVs, bike-share programs and green products), liability insurance for business with high environmental risks, green manufacturing, green buildings and green transport. For investment, it encourages insurers to invest in green industries.

This document sets goals of establishing a comprehensive green insurance policy support system and service framework by 2027, and making green insurance a vital financial tool by 2030. It is expected that both the scale of green insurance products and internal readiness of insurance companies will be accelerated.

Transition finance

In March, a coalition of seven ministries, led by the People’s Bank of China (PBoC), released the Guiding Opinions on Further Strengthening Financial Support for Green and Low-Carbon Development.[9] The document calls for accelerating the development of transition finance standards and defining key elements, including the catalogue of transition activities, disclosure requirements, product frameworks, and incentive mechanisms.

PBOC has completed the compilation of transition finance standards for the first batch of four high-emission sectors including steel, thermal power, construction materials and agriculture and have piloted them in some regions. Compilation work on the second batch of seven sectors including copper, aluminium and textile is in progress.

In addition, local governments and financial institutions actively explored transition finance standards in 2024, such as:

  • Huzhou: Following Huzhou city’s first transition finance catalogue (2023 Version), two group standards regarding financial support for the textile sector and transition loans from banks were published in 2024;
  • Shanghai: Shanghai Transition Catalogue came into effect in January 2024, including six sectors – water transportation, ferrous metal smelting and rolling, petroleum processing, chemical materials and products manufacturing, automobile manufacturing and air transportation;
  • Tianjin: Following the publication of Chemical Industry Key Areas Transition Finance Implementation Guide in 2023, two transition loans with preferential interest rates were issued for the chemical industry in 2024 – a 3-year transition project loan for a steam condensate waste heat recovery project and a one-year low-carbon transition-linked working capital loan that uses the borrowing company’s green electricity procurement volume as an indicator.[10]
  • Shanxi: A transition finance catalogue for coking and non-ferrous industries was published, focusing on coal and steel.

Biodiversity finance

In January 2024, China’s MEE issued the China Biodiversity Conservation Strategy and Action Plan (2023-2030),[11] as part of the efforts to implement the Kunming-Montreal Global Biodiversity Framework, and a scientific guide to comprehensively improve the level of biodiversity management in the country. It calls for the inclusion of biodiversity factors in the Green Bond Endorsed Projects Catalogue, and encourages financial institutions to consider biodiversity in financing and investment decisions.

Box 1: Key trends in China’s green finance standard system

2.2 Disclosure policy

China made further progress in disclosure policies for all companies, especially listed companies and green bond issuers.

Companies

In December 2024, a coalition of nine ministries led by the Ministry of Finance published Corporate Sustainability Disclosure Guidelines – Basic Guidelines (Trial Version).[12] The guidelines apply to all Chinese companies, but implementation is voluntary at this stage. The Ministry of Finance suggests that a phased strategy will be used, starting with key industries, listed companies and large enterprises. Requirements will also be qualitative rather than quantitative at the beginning.

There is a general convergence between the Basic Standard and IFRS S1 in terms of information quality characteristics, disclosure elements and related disclosure requirements. Building on the Basic Guidelines, China aims to publish a climate-related disclosure standard (benchmarking IFRS S2) and an application guide by 2027 and establish a nationally harmonised system of sustainability disclosure guidelines by 2030.[13]

The Basic Guidelines require four core elements in sustainability information disclosure (Table 1) and adheres to the double materiality principle (impact materiality and financial materiality).

Table 1: Core elements of sustainability information disclosure in Corporate Sustainability Disclosure Guidelines

Core elementsDetails
GovernanceGovernance bodies or persons responsible for overseeing sustainable risks and opportunities;The role of such governance bodies and persons and how they are supervised
StrategySustainability-related risks and opportunities and their projected impact in short, mid and long termHow these risks and opportunities influence company’s strategy and decisionsHow these risks and opportunities influence company’s financial performance
Risk and opportunity managementProcesses and policies to identify, assess, prioritise and monitor sustainable risks;Processes to identify, assess, prioritise and monitor sustainable opportunities;How and to what extent these processes are included in company’s general risk management practice
Metrics and targetsMetrics required by regulations and guidelinesMetrics used by company to measure and monitor its sustainable risks and opportunities, and to measure performance in managing sustainable risks and opportunitiesProgress toward targets set by company and by national laws and regulations
Source: Authors compiled based on Corporate Sustainability Disclosure Guidelines – Basic Guidelines (Trial Version).

For central State-owned Enterprises (SOEs), following the issuance of a work plan and technical guidance in 2023, State-owned Assets Supervision and Administration Commission (SASAC) further urged central SOEs to improve ESG information disclosure to better fulfill their social responsibilities in June, 2024.[14] As of September, according to SASAC, 99.6 per cent of listed companies held by central SOEs have published ESG report, but only 14 per cent have worked on ESG standards compilation.[15]

For listed companies, a milestone was Guidelines for Corporate Sustainability Disclosure for Listed Companies jointly released by China’s three major stock exchanges (Shanghai, Shenzhen, and Beijing), which came into effect from May 1, 2024. The Guidelines mandate certain listed companies (SSE180, KIC 50, SZSE 100, GEM indexes and companies listed both domestically and abroad) to disclose ESG information, including Scope 1 and 2 emissions (Scope 3 emissions and scenario analysis are encouraged). The Guidelines refer mainly to international standards such as ISSB and GRI despite differences in details. In November, the three stock exchanges further released the consultation version of a handbook for preparing a sustainability report based on the Guidelines.

In April, the Hong Kong Stock Exchange introduced New Climate Requirements that align more closely with IFRS S2 climate-related disclosures, which will be effective from 2025 in phases.[16] LargeCap issuers and Main Board issuers are required to disclose information such as Scope 3 emissions and climate-related scenario analysis in phases.[17]

In general, the disclosure requirements of sustainability information in 2024 have become more comprehensive, standardised and internationally aligned.

Green bond issuers

In March 2024, National Association of Financial Market Institutional Investors (NAFMII) issued a document requiring green bond issuers to follow the Green Bond Duration Information Disclosure Guide[18] published by China’s Green Bond Standards Committee in 2023 and disclose the 2023 annual report on fund utilisation, special audit reports, and the Q1 2024 fund use report by April 30, 2024. Additionally, reports on Q2 and Q3 fund use must be disclosed by August 31 and October 31, 2024, respectively.

Box 2: Key trends in disclosure policy standards

2.3 Incentive and restraint mechanisms

Incentive and restraint mechanisms for green finance provide policy preferences for entities and financial institutions to stimulate the use of green finance and restrain non-green finance.

At the central level, for policy signals, in January, State Council of China initiated a green fund of 300 billion yuan to support the development of key areas including clean energy, green transport and low-carbon technology.

In addition, the document Guiding Opinions on Doing a Good Job in the Five Major Financial Sectors in the Banking and Insurance Sectors published by four ministries (PBOC, MEE, NFRA and CSRC) emphasises “improving the evaluation system of financial institutions on their implementation of green finance policies” and “give incentives and commendations to enterprises that have clearly committed to green and low-carbon transition and yielded good results”.

PBoC and NFRA are leading monetary incentive tools, including:

  • In 2021, PBoC launched a carbon reduction support tool to support carbon emission reduction projects through cheap lending to financial institutions, which will remain effective until the end of 2027.[19] By the end of the second quarter 2024, carbon-reduction lending statistics of selected banks are shown in Table 2. Nearly all projects supported by this tool are clean energy projects.

Table 2: Carbon-reduction lending statistics of selected banks

 Second quarter of 2024Since the adoption of the tool
 Loans issued (billion yuan)No. of projects supportedWeighted average interest rate (%)Loans issued (billion yuan)No. of projects supportedWeighted average interest rate (%)
Bank of China13.251892.50157.958942.94
China Development Bank11.471652.70134.416183.10
Postal Savings Bank of China2.11253.3150.984843.50
Agricultural Development Bank of China3.35503.3838.322283.53

Special re-lending for clean coal projects expired at the end of 2023. However, as NDRC and NEA highlighted increasing financial support for the decarbonisation of coal power,[20] new transition finance incentives might be in place in the future.

At the local level, progress in green finance incentives includes:

  • Huzhou (Zhejiang province): Huzhou’s banks innovated specialty financial products like “transition loans” and “carbon efficiency loans” that link to borrowers’ transition goals and carbon efficiency performance.[21] “Transition loans” provide an interest subsidy of 50 basis points for high-emission companies that meet the scheduled progress of transition targets. “Carbon Efficiency Loan” provides differentiated interest rates based on a company’s carbon efficiency rating to incentivise companies to improve carbon efficiency through technological upgrades.
  • Inner Mongolia: The Bank of China local branch issued a 100-million-yuan ESG-linked loan to China Shengmu Organic Milk Limited. The ESG-linked loan will mainly be used to support investment in desert management, ecological restoration, green production and biodiversity conservation.[22]

Box 3: Relevant trends in incentive and restraint mechanism

2.4 Products and market system

Progress in green finance products and market system is observed in green and transition bonds, carbon footprint, and green certificates.

Green and transition bonds

In October 2024, the National Association of Financial Market Institutional Investors (NAFMII) published a Notice on Further Improving Mechanisms Related to Green and Transition Bonds.[23] It relaxed disclosure requirements in the registration and issuance stages but asked for a stricter selection process for green projects and improved post-issuance tracking and monitoring. It also encourages the issuance of transition bonds by broadening the scope of eligible issuers and eligible uses of proceeds. To support private companies in green and transition bonds issuance, it proposes to use credit enhancement tools such as Credit risk mitigation certificates (CRMW), credit-linked notes (CLN), guaranteed credit enhancement, and transactional credit enhancement.

Carbon footprint quantification

Following a high-level document[24] of accelerating carbon footprint management systems in 2023, an implementation plan and a national standard were published in 2024. In May, 15 ministries led by MEE issued the Implementation Plan for Establishing a Carbon Footprint Management System,[25] aiming to formulate internationally-aligned carbon footprint accounting standards for 100 priority sectors by 2027 and 200 priority sectors by 2030. Priority sectors include power, coal, natural gas, fuel oil, iron and steel, electrolytic aluminium, cement, fertilizer, hydrogen, lime, glass, ethylene, ammonia, calcium carbide, methanol, lithium batteries, new energy vehicles, photovoltaic and electronic appliances.

In September, a national standard Greenhouse Gas – Carbon Footprint of Products – Requirements and Guidelines (GB/T 24067-2024) was issued by State Administration for Market Regulation with guidance from MEE. The Standard draws on international standard ISO 14067[26] but adds specific product carbon footprint standards, guidelines on data geographic boundaries, and detailed steps for identifying, declaring, and reviewing product carbon footprints. It serves as a basis for the preparation of product carbon footprint accounting standards of various sectors. Building on GB/T 24067-2024, the Ministry of Industry and Information Technology (MIIT) issued a guideline specifically for carbon footprint accounting of industrial products in November.

Emission Trading (ETS) and China Certified Emission Reduction Credits (CCER)

China’s Emission Trading System (ETS) saw rapid development in terms of both policy and market standards in 2024. In January, the State Council promulgated Interim Regulations on the Administration of Carbon Emission Trading,[27] effective on May 1, 2024. As the first specialised legislation on climate change in China, it includes concrete guidelines for the responsibilities of government agencies, key emitting entities and third-party service providers, as well as legal penalties for behaviours like falsification, failure to pay carbon allowances or obstruction of inspection by supervising government agencies. With the regulation in place, China’s national ETS is expected to be more standardised. In 2024, the annual trading value amounted to 18.1 billion yuan (approximately $2.5 billion), setting a new record for annual transaction value since the market’s inception in 2021.[28]

For the power generation sector, in July, MEE released the public consultation version of Total Amount and Allocation of Allowances for Power Generation Sector in National ETS for The Years 2023 and 2024, making adjustments to emissions allowance and accounting rules in previous years. In particular, it links the maximum allowable carry-over of quotas to net sales by companies, therefore boosting market trading activity in the short to medium term.[29]

The power generation sector is still the only sector included in China’s national ETS, but research and evaluation on including other priority sectors has been ongoing. In 2024, MEE announced that cement, steel, electrolytic aluminium would be included in national ETS by 2025,[30] and published the consultation versions of guidelines for GHG reporting and verification for the three sectors.

MEE officially re-launched China Carbon Emission Reduction (CCER) market on 22 January 2024 after seven years of hiatus. CCER supplements the national Emissions Trading System (ETS) market, which was launched in July 2021. The initial four sectors supported by CCER include offshore wind power, solar thermal power, afforestation and mangrove vegetation. Methodology for two more sectors, coal mine gas recycling and highway tunnel lighting energy saving, were published for consultation in August 2024.

Green electricity certificates (GECs)

A previous policy document[31] published in 2023 had established green electricity certificates as the sole mechanism in China for verifying renewable power generation and consumption, and assigned National Energy Administration (NEA) as the verifier and issuer of GECs.

In January 2024, China’s NDRC, National Bureau of Statistics (NBS), and NEA jointly issued a notice[32] to leverage GECs for controlling energy consumption and intensity, as well as promoting non-fossil fuel consumption. This notice also incorporated GECs into the accounting of energy-saving assessment indicators.

On August 26, the NEA published the Rules for Issuance and Trading of Renewable Energy Green Electricity Certificates,[33] laying out logistics details about GEC issuance and trading. This document aims to standardise the GEC system and facilitate the green electricity trading market.

China also encourages the integration of GECs with China Certified Emission Reduction (CCER) credits for offshore wind power and solar thermal power projects[34] starting October 1st. During a two-year transition period, these projects can choose to receive either GECs or apply for CCER credits. The policies may be adjusted after this transition period based on performance and market conditions.

Box 4: Recent trends in product and market

2.5 International cooperation and standards

China continued its active contribution to shaping international green finance standards. In November 2024, IPSF Multi-jurisdiction Common Ground Taxonomy (M-CGT) led jointly by PBOC, the European Commission Directorate‑General for Financial Stability, Financial Services and Capital Markets Union and the Monetary Authority of Singapore was unveiled during COP29. The taxonomy expands on previous version of China-EU Common Ground Taxonomy, and aims to harmonise sustainable finance criteria in China, the European Union, and Singapore and facilitate cross-border flows of green capital. China’s Green Finance Committee is organising work on labelling green bonds aligned with the new Common Ground Taxonomy. By end of November 2024, 352 domestic green bonds have been labelled.[35]

China is also expanding international cooperation on emissions trading schemes. In August 2024, MEE released an updated MoU with the European Commission on enhancing cooperation on emissions trading. The MoU highlights strengthening dialogue and collaboration on the roles of CCER, ETS expansion, ETS’s relationship with green power and green certificates, mutual recognition on carbon accounting and product carbon cost verification as well as carbon market systems, quota allocation approaches, and MRV mechanisms.[36]

During the 2024 G20 Summit in Rio de Janeiro, Chinese President Xi Jinping appeals to accelerating the implementation of G20 Sustainable Finance Roadmap to better meet the green financing needs of developing countries, and of the Kunming-Montreal Global Biodiversity Framework. He also emphasised the approach of “establishing the new before abolishing the old” in energy transition, i.e. ensure energy security when replacing traditional energy with clean energy.[37]

China is expected to submit updated Nationally Determined Contributions (NDCs) in 2025. During the COP29 World Leaders Climate Action Summit in November, Chinese Vice Premier Ding Xuexiang announced that China will submit its 2035 nationally determined contributions that are economy-wide and cover all greenhouse gases and strive to achieve carbon neutrality before 2060. The new NDCs are expected to see major improvement from the 2021 version, particularly the expansion from CO2 to all greenhouse gases. China also announced its global finance contribution during COP29 to be 177 billion renminbi (about USD 24.3 billion).

Chinese financial institutions are incorporating green insurance standards into BRI investments. In November 2024, the Belt and Road Reinsurance Pool held its 10th Council Meeting in Kunming, Yunnan Province. The meeting launched “Green Insurance Principles” for BRI projects, including identifying and assessing environmental risks in projects and developing differentiated underwriting solutions.

Box 5: Trends in international green finance

3. Green finance application through green finance instruments

The next section analyses the development of the following green finance instruments:

  • Green loans
  • Green bond
  • Transition bonds
  • Green insurances
  • Green funds

3.1 Green loans maintain strong growth

By the third quarter of 2024, China’s outstanding green loans balance in both domestic and foreign currencies reached 35.75 trillion yuan (about 4.9 trillion US dollars), an increase of 19 per cent compared with 2023 Q3. The share of outstanding green loans in total outstanding loans grew slightly to 13.9 per cent (Figure 1).

By usage, outstanding green loans mainly support the green upgrade of infrastructure and clean energy. By sector, outstanding loans for borrowers in the electricity, heat, gas and water production and supply industry have been growing steadily since 2018
(Figure 2).

Figure 1: China’s green loans balance by use of proceeds and sector in 2024

Source: Authors compiled based on PBoC’s public reports; includes only 21 major banks.

Figure 2: China’s green loans and total loans balance 2013-2024

Source: Authors compiled based on PBoC’s public reports; includes only 21 major banks.

3.2 Continued slow-down in green bonds growth

In 2024, the number of newly-issued green bonds in China was slightly smaller than in 2023, but the size of issuance declined by 18 per cent compared with 2023 (Figure 3). This was mainly contributed by a decline in green bonds issued by financial institutions (a 77 per cent drop in 2024 H1 compared with 2023 H1) as a result of the large number of green bonds issued in previous years still being deployed and absorbed and the more hesitant issuance of large-scale green bonds.

The share of green bonds in the total bond market remains small. The size of newly-issued green bonds in 2024 accounts for 0.85 per cent of China’s domestic bond market, 0.32 per cent down from last year.[38] In 2024, raised funds are mainly used for clean energy (55 per cent in terms of issuance size) and green transport (29 per cent).[39]

A majority of new green bonds in 2024 were issued by state-owned and state-controlled institutions (in which the government share is 50 per cent or more), but the participation of non-SOEs has been growing steadily, from 1 per cent in 2021 to about 20 per cent in 2024 in terms of issuance size.

Trading volume in the secondary market declined accordingly. In 2024, a total of 1,014 green bonds (a decrease of 12.89 per cent compared to 2023) participated in trading, with an annual spot trading volume of 1.15 trillion yuan (a decrease of 29 per cent compared to 2023).[40]

Specialty green bonds slightly rebounded in 2024. For carbon-neutral bonds, issuance amount was up by 7 per cent year-on-year, and the number of bonds issued rose by 19 per cent; for blue bonds, issuance amount surged by 519 per cent (though still small in scale) and number of bonds issued increased by 22 per cent (Figure 3).[41]

Figure 3: Carbon-neutral bonds and blue bonds issuance in China

Source: Authors based on data from Wind and China Chengxin Credit Rating.

Figure 4: Continued decline in China onshore green bond market in 2024

Source: Authors based on data from International Institute of Green Finance and Climate Bonds Initiative.

Box 6: China’s green bonds and the China-EU Common Ground Taxonomy (CGT)[42]

Panda bonds issuance reached a record high in 2024, reflecting growing interest among foreign entities in issuing renminbi-denominated bonds in China’s domestic market. According to Wind data, in 2024, 109 panda bonds were issued, totalling 194.8 billion yuan. This marks a 15.96 per cent increase in the number of bonds issued and a 26.12 per cent increase in total value compared to 2023. Contributing factors include a cost advantage of issuing panda bonds due to the widening interest rate gap between China and the United States, as well as China’s 2022 policy shift allowing funds raised from Panda bond to be remitted overseas.[43] Among others, the issuance amount of Green, social, sustainability, and sustainability-linked (GSSS) bonds reached 17 billion yuan,[44] lower than 2023 (21.7 billion yuan).[45]

3.3 Transition-related bonds show great potential

Transition-related bonds in China include four categories:[46]

  • In the interbank market: Sustainability-linked bonds and transition bonds
  • In the stock exchange market: Low-carbon transition (corporate) bonds and Low-carbon transition-linked (corporate) bonds

In 2024, the issuance of transition-related bonds accelerated, with an annual issuance scale of 64.86 billion yuan, a year-on-year increase of 53.6 per cent (Table 3).[47]

Table 3: China’s transition-related bonds issuance in 2024

Bond TypeNumber of BondsTotal Scale (Billion Yuan)Year-on-Year Growth
Sustainability-linked bonds4734.97+35.1%
Low-carbon transition-linked bonds2317.99+27.8%
Low-carbon transition bonds310.40–
Transition bonds21.50–
Total7564.86+53.6%
Source: Author compiled based on data from CIB Research.

Among the 70 Sustainability-linked Bonds and Low-carbon transition-linked bonds, a large majority of issuers are state-owned institutions; 45 bonds included interest rate step-up clauses, ranging from 5 to 30 basis points; 50 bonds set at least 1 KPIs related with energy efficiency improvement, sustainable construction sector, clean energy and others.[48]

3.4 Green insurance products grow in scale and type

Despite the absence of specific green insurance policies until late 2022, the instrument has experienced rapid growth. According to the Insurance Association of China, in 2023, green insurance generated a premium income of 229.8 billion yuan, accounting for 4.5 per cent of the industry’s total premiums, with an insurance coverage of 70.9 trillion yuan.[49] As of the end of August 2024, green insurance provided a cumulative insurance coverage of 469 trillion yuan, an increase of 23.4 per cent year-on-year. Claims payments reached 116.25 billion yuan, up 77.8 per cent compared to the previous year.[50]

In 2024, insurance companies continued to innovate with existing insurance types and actively explore relatively new insurance types:

  • Catastrophe insurance: In February, the first 5-year comprehensive catastrophe insurance covering all disaster types was implemented in Hebei province. Premiums are paid by the government budget, and it provides coverage for personal, housing, and property for all residents in the province.[51]
  • Carbon insurance: In April, China Continent Insurance launched a comprehensive insurance for shellfish carbon sink value and aquaculture costs in Liaoning province, providing 16.9 million yuan in coverage.[52] In May, People’s Insurance Company of China provided insurance coverage for the carbon sinks generated by approximately 2,636 hectares of farmland and forests in the jurisdiction of Qiqiao Subdistrict. If natural disasters or accidents cause damage that reduces the carbon sink amount below a predetermined threshold, Qiqiao Subdistrict becomes eligible for compensation.[53]
  • Green loans + biodiversity insurance: In November, Industrial Bank issued a green loan of 8 million yuan (about 1.1 million USD) to a company in Sichuan Province. The loan is primarily intended for Guanyinhu National Wetland Park’s greening efforts. The insurance, developed in collaboration with China Life Property Insurance, protects wetland vegetation against risks of environmental damage and species reduction caused by natural disasters.

3.5 Green funds have a strong rebound

The number and size of publicly issued green funds[54] saw a strong rebound in 2024 (Figure 5). In particular, green bond funds gained increased market attention. A total of 8 green bond funds were launched with an issuance amount of 56 billion yuan, compared with 3 bonds and 10.5 billion yuan in 2023.[55] Some debuts include:

  • First green bond index themed around biodiversity: In September, the CSI-CITIC Biodiversity-Focused Credit Bond Index jointly compiled by China Securities Index Company and CITIC was launched in Beijing. It included 1,039 sample bonds with an investable bond scale of 3.3 trillion yuan;
  • First green bond index based on the Common Ground Taxonomy: In November, the JPMorgan Common Ground Taxonomy Green Bond Fund was established with an issuance scale of 6 billion yuan;
  • First high-grade bond index fund addressing climate change: In December, the Neuberger Berman CFETS 0-5 Year Climate Change High-Grade Bond Composite Index Fund was established with an issuance scale of 6 billion yuan.

Figure 5: China’s green funds issuance in 2024

Source: authors based on Wind data.

4. Trend scouting

Many areas of China’s green finance landscape experienced fruitful development in 2024. We identify 10 trends in 2024 and 2025 based on the analysis in previous chapters.

  1. Green and low-carbon development becomes a mainstream priority for all sectors. The recent shift of China’s focus from the dual control of energy consumption to carbon emissions, and its pursuit of “a beautiful China” is driving positive changes across the economy. Green finance is playing an increasingly prominent role in resource allocation, risk management, and market pricing in support of building “a Beautiful China”.
  2. Enhanced regulation for green and transition bond deters “greenwashing”. New regulation by NAFMII eases disclosure requirements during the registration and issuance stages of green bonds to the administrative burden, but introduces more rigorous standards for the selection of green projects and strengthens post-issuance tracking and monitoring mechanisms.
  3. Sustainability disclosure policy is enhanced and more aligned with international standards. The Corporate Sustainability Disclosure Guidelines published in December refers to IFRS S1 in terms of information quality characteristics, disclosure elements and related disclosure requirements, setting the foundation for a climate-related disclosure standard (benchmarking IFRS S2) and an application guide by 2027, and a nationally harmonised system of sustainability disclosure guidelines by 2030. In addition, China’s three major stock exchanges (Shanghai, Shenzhen, and Beijing) published mandatory guidelines for certain listed companies to disclose ESG information including Scope 1 and 2 emissions (Scope 3 emissions and scenario analysis are encouraged).
  4. Transition finance has been brought to spotlight. China’s energy transition, as stated in its white paper[56], should “adhere to the principle of establishing new systems before dismantling old ones”. For China, a smooth and secure transition from fossil fuels to renewables aligns more with its interest. With NDRC publishing “Green and Low-Carbon Transition Industry Guidance Catalogue” and with PBoC finished compiling transition finance standards for steel, thermal power, construction materials and agriculture and working on the more sectors, transition finance is expected to play a more crucial role in decarbonising hard-to-abate sectors.
  5. China’s first specialised legislation on climate change was enacted. The legislation fills a legal gap and allows for the mobilisation of multiple ministries to support carbon trading nationally. It includes provisions to guarantee the quality and accuracy of emissions data, strengthen management of technical service organisations, and increases penalties for carbon emissions data fraud.
  6. The relaunch of CCER marks a significant step in advancing China’s voluntary carbon market. The relaunch established a unified national market, replacing the disparate regional markets. It also brought significant changes to its structure and operation, including more streamlined registration process and increased transparency and public disclosure of information related to voluntary greenhouse gas emission reduction projects.[57]
  7. Significant strides were made in developing carbon footprint standards. With the aim to formulate internationally-aligned carbon footprint accounting standards for 100 priority sectors by 2027 and 200 priority sectors by 2030, and high-level guidelines in place, more product-specific carbon footprints accounting instructions are expected to be issued.
  8. Green insurance experiences multifaceted expansion. Following several releases of guidelines on classification, statistics, and disclosure requirements, the market is actively piloting diversified green insurance products, covering biodiversity, environmental protection, natural disasters, green transportation, green manufacturing and carbon sink. The Green Insurance Principles for BRI projects was published to support green governance with partner countries.
  9. Green bond market saw overall contraction but notable pockets of growth and diversification. For the second consecutive year since 2022, both the number of new green bonds issued and their total issuance volume decreased. The secondary market also experienced a decline in trading volume, indicating a broader slowdown in green bond activity. However, certain segments, including carbon-neutral bonds and blue bonds, of the green bond market showed resilience and growth. The percentage of non-SOE issuers steadily increased, suggesting a broadening participation in the green bond market.
  10. Stronger leadership in international green finance arena. As China’s green finance landscape become more complete and internationally-aligned, China is ready to play a more prominent role in standards setting and green overseas investment globally.

5. Barriers and recommendations to accelerate green finance in China

Green finance in China made significant strides in 2024, with notable policy advancements addressing previously identified barriers, such as an incomplete legal system and inconsistent disclosure requirements. However, several challenges persist:

  1. The national policy framework for transition finance remains underdeveloped. While the Green and Low-Carbon Transition Industry Guidance Catalogue (2024 version) now includes low-carbon transition industries, dedicated transition finance standards exist only at the local level, leading to inconsistencies in implementation and evaluation across different regions. In addition, the absence of a unified national framework makes it difficult for financial institutions and investors to assess transition projects accurately, potentially hindering capital allocation to genuinely sustainable initiatives and raising the risk of “transition-washing”.
  2. The share of green assets remains limited. Green loans continue to dominate the green financial market, accounting for 13 per cent of total outstanding loans by the end of 2024. Green bonds represent less than 1 per cent of total bond issuance. Innovative green insurance products struggle to scale. Green funds have yet to gain mainstream adoption. The limited availability of green financial instruments makes it challenging for financial institutions to offer tailored support to clients and for companies to find suitable financing options that meet their specific needs.
  3. Financial institutions still face significant barriers in internal organisation and capacity building. Their capacity for scenario analysis, stress testing, and carbon accounting remains insufficient, making it challenging to accurately measure climate-related risks and the long-term viability of green investments. The lack of standardised methodologies and reliable data further complicates the assessment process, especially for small and medium financial institutions.

Figure 6: Recommended actions for China’s green finance development

Source: Authors.

Through an examination of China’s green finance development and the identification of existing gaps, this study proposes the following recommendations for accelerating China’s green finance development:

  • Establish a national policy framework for transition finance by drawing upon principles outlined in the G20 Sustainable Finance Report and lessons learned from local pilot programs. For companies, clearly define eligible transition activities, verification standards, disclosure requirements, and penalties for non-compliance. This will provide a structured pathway for businesses to understand and implement transition strategies.
  • Align financial regulations with transition finance. Revise restrictions on financial support for high-emission industries to tap the potential of financial institutions and integrate transition finance metrics into institutional green finance performance evaluations.
  • Standardise green fund policies. Develop a unified definition, evaluation criteria and investment guidelines green fund.
  • Continue to expand and enhance green insurance products. Encourage insurers to develop a wider range of green insurance offerings. Meanwhile, improve environmental risk assessment process while strengthening the use of technology to provide data support for the pricing and claims management.
  • Accelerate green bonds market diversification. Encourage the participation non-SOE issuers with incentive measures and increase the share of long-term green bonds to provide stable financing for green projects.
  • Accelerate the expansion of the national carbon market. Broaden market coverage by including newly proposed industries to enhance liquidity and market efficiency.
  • Strengthen green finance capacity building for financial institutions. Encourage financial institutions to utilise technology for environmental data collection, climate risk assessment and quantitative disclosure of sustainability metrics. Enhance internal organisation and capacity building initiatives to improve ability to assess and manage green investments effectively.
  • Provide risk-adjusted and policy-adjusted incentive schemes for financial institution employees to support the sustained growth of green financial markets (primary objective of employees) and de-facto green economic growth (indirect objective of employees) with different incentives for different levels of employees.
  • Encourage government-led ESG investment initiatives for market growth. Use government funding to support ESG investment, initiate pilots in mature markets, and promote ESG fund growth. Standardise practices, establish accurate values, and increase investor engagement. Also, boost public understanding of green finance for market expansion.

Annex 1: Overview of China’s green finance governance

China’s financial governance system is in a new structure since the significant transformation in 2023 (Figure 7):

  • The newly-established Central Financial Commission (CFC) replaced the responsibilities of former Financial Stability and Development Committee, becoming the primary body for financial decision-making and coordination;
  • The newly-established National Financial Regulatory Administration (NFRA) replaced the CBIRC and took on broader responsibilities. Meanwhile, dispatched agencies of NFRA would lead local financial regulatory framework;
  • The People’s Bank of China (PBoC) now concentrates on monetary policy and macro-prudential supervision, no longer overseeing financial holding companies. Its organisation was also streamlined.
  • China Securities Regulatory Commission (CSRC)‘s role as the capital market regulator has been enhanced by incorporating supervision of enterprise bond[lviii] issuance from NDRC into its purview, consolidating oversight of both enterprise and corporate bond[lix] issuance.

Despite reforms in the financial sector, green finance governance in China still involves multiple ministries, including PBoC, NFRA, CSRC, the Ministry of Finance, the Ministry of Ecology and Environment, NDRC and the State-owned Assets Supervision and Administration Commission. The development of green finance in China is driven mostly by a top-down approach in the forms of issuing guidance policies, proving market incentives and setting up pilot zones.

Figure 7: China’s financial regulatory regime before and after reforms

Source: Jefferies/Reuters, developed/corrected by authors.

Provincial and city government offices support and partly implement national green finance policies through local DRCs (development of reform commission, the local level ministry of the NDRC), the Bureau of Finance, or the Bureau of Ecology and Environment[lx]. They also publish local policies based on national high-level policies for more targeted implementation.

On the sub-national level, two types of pilot zones have been established to explore replicable and scalable green finance practices: Green Finance Reform and Innovation Pilot Zone[lxi] since 2017, and Climate Investment and Financing Pilot[lxii] since 2022. In August 2022, 23 climate finance pilot zones across China were approved. While some cities belong to both categories, the missions of climate finance pilot zones focus more on discouraging high-emission projects, developing carbon finance and carbon accounting.

About the authors

Professor Christoph Nedopil Wang, Director, Griffith Asia Institute

Dr Christoph NEDOPIL is the Director of the Griffith Asia Institute and a Professor at Griffith University in Brisbane, Australia. He is also a Visiting Professor at FISF Fudan University, Shanghai, Acting Director of the Green Finance & Development Center at FISF Fudan University, and a Visiting Faculty at Singapore Management University (SMU).

Christoph regularly provides advice to governments, financial institutions, enterprises, and civil society on sustainable development issues. He is the lead author of the UNDP SDG Finance Taxonomy, the Innovative Climate Finance Solutions report for the G20 in Indonesia, and the Green Development Guidance of the BRI Green Development Coalition under the Chinese Ministry of Ecology and Environment. He has authored four books and published articles in Science and other leading journals. Christoph serves as a board director in scaling sustainability in businesses and finance.

Christoph is quoted regularly in Financial Times, The Economist, Reuters, Bloomberg, and other major outlets. Before joining Griffith University, he served as Founding Director of the Green Finance & Development Center and Associate Professor at the Fanhai International School of Finance (FISF), Fudan University and previously as Founding Director for the Green BRI Center at the Central University of Economics in Beijing. He worked with the World Bank in over 15 countries and was a Director in the German development agency GIZ. Christoph holds a Master of Engineering and a PhD in Economics from the Technical University Berlin, as well as a Master of Public Administration from Harvard Kennedy School.

Mengdi YUE is a non-resident fellow at the Green Finance & Development Center. She previously was a researcher at the Green BRI Center at the International Institute of Green Finance (IIGF) in Beijing, China.

Mengdi holds a Master in International Relations from JHU School of Advanced International Studies (SAIS) and has worked with the American Enterprise Institute (AEI), the European Union Chamber of Commerce in China and the China-ASEAN Environmental Cooperation of the Ministry of Ecology and Environment. She is fascinated by green energy finance in China and the Belt and Road Initiative and data analysis.

Notes and references

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[2]        National Financial Regulatory Administration. “国家金融监督管理总局发布《关于银行业保险业做好金融‘五篇大文章’的指导意见》 [Guidelines on Promoting the ‘Five Major Tasks’ in Banking and Insurance Sectors].” May 2024. https://www.gov.cn/zhengce/zhengceku/202405/content_6950223.htm.

[3]        Christoph Nedopil and Ziying Song, “China Green Finance Status and Trends 2022-2023” (Shanghai: Green Finance & Development Center, FISF Fudan University, IISD, February 2023), https://cciced.eco/wp-content/uploads/2023/01/GFDC-2023_China-Green-Finance-Trends-and-Opportunities.pdf.

[4]        Jiang Zhang, Ziying Song, and Christoph Nedopil, “China Green Finance Status and Trends 2023-2024” (Brisbane: Griffith Asia Institute, Green FInance & Development Center, FISF Fudan University, 2024), DOI: 10.25904/1912/5205.

[5]        People’s Daily Online. “陈雨露：绿色金融‘三大功能’‘五大支柱’助力碳达峰碳中和 [Vice Governor of PBOC Chen Yulu: Green Finance’s ‘Three Functions’ and ‘Five Pillars’ Help Carbon Peak and Carbon Neutralization].” March 2021. http://finance.people.com.cn/n1/2021/0307/c1004-32044837.html.

[6]        National Development and Reform Commission (NDRC). “关于印发《绿色低碳转型产业指导目录（2024年版）》的通知 [Notice on Issuing the ‘Green and Low-Carbon Transition Industry Guidance Catalogue (2024 Edition)’].” March 2024. https://www.gov.cn/zhengce/zhengceku/202403/content_6935418.htm.

[7]        Hong Kong Monetary Authority (HKMA). “Guidelines and Circulars.” May 2024. https://www.hkma.gov.hk/media/gb_chi/doc/key-information/guidelines-and-circular/2024/20240503c1.pdf.

[8]        State Council. “关于推动绿色保险高质量发展的指导意见 [Guidelines on Promoting the High-Quality Development of Green Insurance].” April 2024. https://www.gov.cn/zhengce/zhengceku/202404/content_6947537.htm.

[9]        State Council. “关于进一步强化金融支持绿色低碳发展的指导意见 [Guidelines on Further Strengthening Financial Support for Green and Low-Carbon Development].” April 2024. https://www.gov.cn/zhengce/zhengceku/202404/content_6944452.htm.

[10]       Tianjin Daily. “全国首批化工行业转型金融贷款在津落地 对接企业需求 做绿色金融文章 [The First Batch of Transition Finance Loans for the Chemical Industry Lands in Tianjin, Meeting Corporate Needs and Promoting Green Finance].” June 2024. https://gyxxh.tj.gov.cn/glllm/gabsycs/gxdtgh/202406/t20240618_6655014.html.

[11]       Ministry of Ecology and Environment (MEE). “中国生物多样性保护战略与行动计划（2023-2030年） January 2024, https://www.mee.gov.cn/ywdt/hjywnews/202401/t20240118_1064111.shtml.

[12]       Ministry of Finance. “关于印发《企业可持续披露准则——基本准则（试行）》的通知 [Notice on Issuing the ‘Corporate Sustainability Disclosure Standards – Basic Standards (Trial)’].” November 2024. https://www.gov.cn/zhengce/zhengceku/202412/content_6993358.htm.

[13]       Ministry of Finance. “财政部会计司有关负责人就《企业可持续披露准则——基本准则（试行）》答记者问 [Responsible Person from the Ministry of Finance’s Accounting Department Answers Reporters’ Questions on the ‘Corporate Sustainability Disclosure Standards – Basic Standards (Trial)’].” November 2024. https://www.gov.cn/zhengce/202412/content_6993363.htm.

[14]       State Council. “关于进一步优化绿色及转型债券相关机制的通知 [Notice on Further Optimizing Mechanisms Related to Green and Transition Bonds].” June 2024. https://www.gov.cn/zhengce/zhengceku/202406/content_6955457.htm.

[15]       East Money. “关于绿色金融发展的最新政策解读 [Latest Policy Interpretation on Green Finance Development].” November 2024. https://finance.eastmoney.com/a/202411093234647166.html.

[16]       Hong Kong Exchanges and Clearing Limited (HKEX). “Regulatory Announcements.” April 2024. https://www.hkex.com.hk/News/Regulatory-Announcements/2024/240419news?sc_lang=en.

[17]       Freshfields. “HKSE New Climate Disclosure Requirements – Changes to the HK Listing Rules.” April 2024. https://www.freshfields.com/en-gb/our-thinking/knowledge/briefing/2024/04/hkse-new-climate-disclosure-requirements–changes-to-the-hk-listing-rules/.

[18]       绿色债券标准委员会, “关于发布《绿色债券存续期信息披露指南》的公告 [Announcement on the Release of the “Green Bond Duration Information Disclosure Guidelines”],” November 2023, https://www.nafmii.org.cn/ztbd/lszqbzwyh/tzgg/202311/t20231129_316418.html. 

[19]       People’s Bank of China and Ministry of Ecology and Environment. “央行、生态环境部重磅会议 延续实施碳减排支持工具到2027年 [PBOC and MEE Hold Key Meeting to Extend Carbon Emission Reduction Support Tools to 2027].” January 2025. https://finance.sina.com.cn/jjxw/2025-01-08/doc-ineehmtv8060171.shtml.

[20]      National Development and Reform Commission (NDRC) and National Energy Administration. “国家发展改革委 国家能源局关于印发《煤电低碳化改造建设行动方案（2024—2027年）》的通知 [Notice on Issuing the ‘Action Plan for Low-Carbon Transformation of Coal Power (2024–2027)’].” July 2024. https://www.gov.cn/zhengce/zhengceku/202407/content_6963501.htm.

[21]       Green Finance Committee. “湖州市落地浙江省唯一转型金融改革创新试点 [Huzhou City Launches Zhejiang Province’s Only Pilot Reform and Innovation Initiative for Transition Finance].” May 2024. http://www.greenfinance.org.cn/displaynews.php?id=4284.

[22]       Securities Times. “全国首笔自然受益型 商业ESG挂钩贷款落地内蒙古 [The First Natural Benefit-Linked Commercial ESG Loan in China Lands in Inner Mongolia].” July 2024. https://www.stcn.com/article/detail/1248399.html.

[23]       National Association of Financial Market Institutional Investors (NAFMII). “关于进一步优化绿色及转型债券相关机制的通知 [Notice on Further Optimizing Mechanisms Related to Green and Transition Bonds].” October 2024. https://www.nafmii.org.cn/ggtz/tz/202410/t.

[24]       National Development and Reform Commission (NDRC). “关于发布《绿色低碳转型产业指导目录（2024年版）》的通知 [Notice on Issuing the ‘Green and Low-Carbon Transition Industry Guidance Catalogue (2024 Edition)’].” November 2023. https://www.ndrc.gov.cn/xxgk/zcfb/tz/202311/t20231124_1362231_ext.html.

[25]       See 14.

[26]       International Organization for Standardization (ISO). “ISO 14067:2018 Greenhouse Gases — Carbon Footprint of Products — Requirements and Guidelines for Quantification.” 2018.

[27]       State Council. “关于推动绿色金融高质量发展的指导意见 [Guidelines on Promoting the High-Quality Development of Green Finance].” February 2024. https://www.gov.cn/zhengce/content/202402/content_6930137.htm.

[28]       State Council. “全国碳市场活力进一步提升 去年配额成交额超181亿元 [Vitality of the National Carbon Market Further Improves, with Quota Trading Volume Exceeding 18.1 Billion Yuan Last Year].” January 2025. https://www.gov.cn/lianbo/bumen/202501/content_6996423.htm.

[29]       Wang Xun and Cui Ying. “近期碳市场相关政策进展分析和展望[Analysis and Outlook of China’s Carbon Market Policies and Development].” Central University of Finance and Economics, International Institute of Green Finance (IIGF). August 2024. https://iigf.cufe.edu.cn/info/1012/9072.htm.

[30]      Ministry of Ecology and Environment (MEE). “关于公开征求《全国碳排放权交易市场覆盖水泥、钢铁、电解铝行业工作方案（征求意见稿）》意见的函 [Letter on Soliciting Public Comments on the ‘Work Plan for Expanding the National Carbon Emission Trading Market to Cover Cement, Steel, and Aluminium Industries (Draft for Comments)’].” September 2024. https://www.mee.gov.cn/xxgk2018/xxgk/xxgk06/202409/t20240909_1085452.html.

[31]       National Development and Reform Commission (NDRC). “关于发布《绿色低碳转型产业指导目录（2024年版）》的通知 [Notice on Issuing the ‘Green and Low-Carbon Transition Industry Guidance Catalogue (2024 Edition)’].” August 2023. https://www.ndrc.gov.cn/xxgk/zcfb/tz/202308/t20230803_1359092.html.

[32]       National Energy Administration. “关于加强绿色电力证书与节能降碳政策衔接 大力促进非化石能源消费的通知 [Notice on Strengthening the Alignment of Green Power Certificates with Energy Saving and Carbon Reduction Policies to Vigorously Promote Non-Fossil Energy Consumption].” January 2024. https://www.ndrc.gov.cn/xxgk/zcfb/tz/202402/t20240202_1363856.html.

[33]       State Council. “国务院公报 [State Council Gazette].” October 2024. https://www.gov.cn/gongbao/2024/issue_11626/202410/content_6978630.html.

[34]       Ministry of Ecology and Environment (MEE). “关于发布《全国碳排放权交易市场覆盖水泥、钢铁、电解铝行业工作方案（征求意见稿）》意见的函 [Letter on Soliciting Public Comments on the ‘Work Plan for Expanding the National Carbon Emission Trading Market to Cover Cement, Steel, and Aluminium Industries (Draft for Comments)’].” September 11, 2024. https://www.mee.gov.cn/xxgk2018/xxgk/xxgk10/202409/t20240911_1085663.html.

[35]       Green Finance Committee. “绿金委 [Green Finance Committee].” Accessed 2024. http://www.greenfinance.org.cn/displaynews.php?id=4427.

[36]       See 29.

[37]       Beijing Municipal Government. “北京市政府信息公开专栏 [Beijing Municipal Government Information Disclosure Column].” November 19, 2024. https://wb.beijing.gov.cn/home/gjjwzx/xxzl/202411/t20241119_3944972.html.

[38]       China Chengxin Green Finance. “2024年国内绿色债券市场年报 [2024 Domestic Green Bond Market Annual Report].” January 2024. http://ccxgf.com.cn/article/340.html.

[39]       SynTao Green Finance. “绿色债券市场2024年报 [Green Bond Market Annual Report 2024].” January 2024. https://www.syntaogf.com/products/greenbond24.

[40]      See 38.

[41]       China Chengxin Green Finance. “2024年国内碳中和/蓝色债券市场年报 [2024 Domestic Carbon Neutrality/Blue Bond Market Annual Report].” http://ccxgf.com.cn/article/341.html.

[42]       Green Finance & Development Center. “绿色金融协会：发布2023中国绿色金融发展报告 [Green Finance Association: 2023 China Green Finance Development Report Released].” Green Finance & Development Center. Accessed February 11, 2025. http://www.greenfinance.org.cn/displaynews.php?id=4408.

[43]       S&P Global. “Your Three Minutes in Panda Bonds: Why Issuance is Surging.” August 6, 2024. https://www.spglobal.com/_assets/documents/ratings/zh/pdf/2024-8-6-your-three-minutes-in-panda-bonds-why-issuance-is-surging.pdf.

[44]       National Association of Financial Market Institutional Investors (NAFMII). “协会动态 [Association News].” November 18, 2024. https://www.nafmii.org.cn/xhdt/202411/t20241118_320356.html.

[45]       Lianhe Ratings. “绿色债券市场研究报告 [Green Bond Market Research Report].” 2024. https://www.lhratings.com/file/f82eabe9e87.pdf.

[46]       Hu Xiaoling, Cui Ying. “IIGF观点|胡晓玲、崔莹：对转型类债券‘转型溢价’的实证分析和发展建议 [IIGF Perspective | Hu Xiaoling and Cui Ying: Empirical Analysis and Development Recommendations for the ‘Transition Premium’ of Transition Bonds].” Central University of Finance and Economics. July 2024. https://iigf.cufe.edu.cn/info/1012/9001.htm.

[47]       Sina Finance.“转型类债券发行提速，绿色债券基金迎发展机遇——可持续债券市场年报（2024年）[Transition Bond Issuance Accelerates, Green Bond Funds Embrace Development Opportunities – Sustainable Bond Market Annual Report (2024)].” January 15, 2025. https://finance.sina.com.cn/stock/stockzmt/2025-01-15/doc-ineeyzvf8083516.shtml.

[48]       China Chengxin Green Finance. “2024年国内可持续发展挂钩债券市场年报 [2024 Domestic Sustainability-Linked Bond Market Annual Report].” January 2024.

[49]       China Insurance Association. “中国保险行业协会发布《2023中国保险业社会责任报告》[China Insurance Association Releases the ‘2023 China Insurance Industry Social Responsibility Report’].” July 25, 2024. https://www.iachina.cn/art/2024/7/25/art_22_107826.html.

[50] Sina Finance. “卜凡伟：今年保险业预计为全国农业生产增加保险保障4000亿元 [Bu Fanwei: Insurance Industry Expected to Provide Additional 400 Billion Yuan in Agricultural Insurance Coverage This Year].” October 21, 2024. https://finance.sina.com.cn/jjxw/2024-10-21/doc-incthspv5596973.shtml.

[51]       PICC. “全国首单，落地！—— 中国银行保险报 [The First National Case, Landed! – China Banking and Insurance News].” March 2024. https://m.picc.com/home/news_1130/wapmtjj/202403/t20240305_5158.html.

[52]       Xinhua News Agency. “辽宁省首个‘蓝碳保险’落地盘锦 保障海洋碳汇价值 促进绿色产业发展 [Liaoning Province’s First ‘Blue Carbon Insurance’ Lands in Panjin, Safeguarding Marine Carbon Sink Value and Promoting Green Industry Development].” April  2024. http://www.news.cn/money/20240426/8fab4c0dfc544cd4adc5673b8521809a/c.html.

[53]       Xinhua News Agency. “关于推动绿色保险高质量发展的指导意见 [Guidelines on Promoting the High-Quality Development of Green Insurance].” May 2024. http://www.xinhuanet.com/legal/20240521/3e7e18bdb40b4f1daddec18fb5189e66/c.html.

[54]       Ther is no official definition of “green funds” yet. “Green funds” in this study is consistent with Wind data, referring to funds with investment objectives, performance benchmarks, or investment philosophies that include keywords such as “ESG”, “social responsibility”, “ethical responsibility”, “green”, “environmental protection”, “low carbon”, “Beautiful China”, “corporate governance”, or “sustainable development”.

[55]       East Money. “完善我国碳市场体系 CCER时隔七年正式重启 [Improving China’s Carbon Market System: CCER Officially Restarts After Seven Years].” January 2025. https://finance.eastmoney.com/a/202501063287773798.html.

[56]       State Council. “《中国的能源转型》白皮书 [China’s Energy Transition White Paper].” August 2024. https://www.gov.cn/zhengce/202408/content_6971115.htm.

[57]       People’s Daily. “完善我国碳市场体系 CCER时隔七年正式重启 [Improving China’s Carbon Market System: CCER Officially Restarts After Seven Years].” January 29, 2024. http://paper.people.com.cn/zgnyb/html/2024-01/29/content_26041048.htm.

[lviii]     Bonds issued by institutions affiliated with central government departments, wholly state-owned enterprises, or state-controlled enterprises.

[lix]       Bonds issued by joint stock company or limited liability company.

[lx]       Green Finance & Development Center. “Green Finance Trends in China (1): China’s Green Finance Policy Landscape.” February 2023. https://greenfdc.org/green-finance-trends-in-china-1-chinas-green-finance-policy-landscape/#_ftn3.

[lxi]       中国政府网. “我国将建设绿色金融改革创新试验区 [China Will Build a Green Finance Reform and Innovation Pilot Zone].” June 2021. https://www.gov.cn/zhengce/2017-06/14/content_5202609.htm.

[lxii]      中国政府网, “生态环境部：23个地方入选气候投融资试点 [Ministry of Ecology and Environment: 23 localities were selected as climate investment and financing pilot projects],” August 2022, https://www.gov.cn/xinwen/2022-08/25/content_5706722.htm.