China issues green bonds worth $31.2b last year

Published: February 28, 2019 13:19:39 | Updated: April 02, 2019 14:19:14

China issued a total of 31.2 billion US dollars in green bonds last year, remaining the world's second-largest green bond market, a recent report showed.

The issuance in 2018 saw a 33-per cent increase from the previous year, according to an annual report on China's green bond market jointly released Tuesday by the China Central Depository & Clearing Co. and Climate Bonds Initiative.

Financial institutions continued to boast the largest share of the issuance, with the Industrial Bank accounting for 23 per cent of last year's total issuance, the largest issuer in China and the second largest worldwide, the report said.

The low-carbon transport sector attracted 33 per cent of the investment funds raised from green bonds, the largest share in China, followed by the energy sector at 28 per cent, reports Xinhua.

According to the report, approximately three-fourths of the domestic green bonds were issued and traded on the country's interbank bond market.

China announced a plan in 2016 to establish a national green finance mechanism, becoming the first country worldwide to make such a move. It also helped push green finance to be included on the G20 agenda.

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