中国绿色债券市场 2018 半年报
JAN-JUNE 2018/2018 年 1 月至 6 月

Market overview
China vs. global green bond issuance70

At a glance

60

USD Billions

50
40
30
20
10
0
Q1

Q2

Q3

Q4

Q1

2017

Q2
2018

China issuance not aligned with international definition
China issuance aligned with international definition
Global issuance aligned with international definitions (except. China)

Global green bond issuance picked up pace in Q2, and total aligned
issuance worldwide reached USD76.9bn for H1 2018. With
USD9.3bn worth of green bonds aligned with international green
bond definitions, China represents 12% of the global market overthis period. Total issuance from China was USD13bn, but USD3.7bn
is not aligned.

USD Billions

H1 2018 Chinese issuance: up 14% YOY
14
12
10
8
6
4
2
0
H1

H1

2017

2018

Financial corporate
Policy BankABS

Non-financial corporate
Government-backed entity

The H1 2018 green bond volume from Chinese issuers shows a
14% increase year on year, primarily driven by strong momentum
from the private sector. Financial corporates’ issuance accounts for
44%, and non-financial corporates contributed 32% to the H1 total.

Total H1 Chinese issuance:
USD 13.02bn/RMB 84.4bn
Onshore issuance:
USD 7.77bn/RMB 49.4bn
Offshore issuance:
USD 5.25bn/RMB 35bn
Issuance that meets international definitions:
USD 9.29bn/RMB 60.75bn
Certified Climate Bonds:
USD 2.57bn/RMB 17.33bn
Largest issuer:Industrial and Commercial Bank of China (London)
Largest issuing sector:
Renewable Energy

With USD5.75bn issued, financial corporates remain the largest
issuer type. Industrial and Commercial Bank of China and Bank of
China top the list. A further 10 regional commercial banks
contributed a total of USD1.9bn of green bond volume to thiscategory. Financial leasing company, Huaneng Tiancheng further
increased the diversity of issuer types with their latest issuance.
Similarly, non-financial corporate issuers feature companies fromvarious industries, and include repeat issuers such as CGN Wind
and Century Concord Wind Power as well as new issuers such as
wind turbine manufacturer Envision Energy Overseas Capital.
Issuance from government backed entities – which includes bonds
from the state-owned asset manager and investment company
Beijing Capital – increased dramatically by 1.5 times YOY.
By contrast, issuance from policy banks was much lower: about athird of H1 2017 volumes. The only issuance this year came from
Agricultural Development Bank of China, which came to market
with a new tap of an existing bond.

China Green Bond Market Mid-Year Report 2018 Climate Bonds Initiative1

Frequent green ABS issuance in 2018 Q2
2018 Q2 witnessed the most frequent green ABS issuance with 5
deals totalling USD659m. This includes a securitisation from
Kunshan Public Transport, which uses bus fare receivables as
underlying collateral to finance the purchase of low carbon
emission buses and fleet.

Amount(CNY)

IssuerAsset / ABS collateral

Kunshan Public
Transport

Bus fare receivables

280m

China Resources Leasing

Leasing agreements
receivables

1.3bn

Harvest Capital/CECEP

Commercial real estate
mortgage loan

1bnHengan ElectricalEngineering

Hydropower station
feed-in tariff receivables

400m

Nanjing Metro

Commercial properties
receivables

1.2bn

Over 40% of green bonds from China domiciled issuers was issued
overseas in the first half of the year thanks to leading corporations
and large commercial banks. ICBC (London) and ICBC (Asia) listed a
total of USD2.3bn green bonds on the London Stock Exchange andHong Kong Stock Exchange in June, making ICBC the largest
offshore green bond issuer for 2018YTD.

13.1%
0.5%
59.7%

Beijing
Anhui
Guangdong
Zhejiang
Hebei
Jiangsu
Hubei
Hunan
Shandong
Shanghai
Shanxi
Henan
Shaanxi
TianjinXinjiang

Beijing
Anhui
Guangdong
Zhejiang
Hebei
Jiangsu
Hubei
Hunan
Shandong
Shanghai
Shanxi
Henan
Shaanxi
TianjinXinjiang0m

Over 40% of H1 2018 volume was issued overseas

40.3%

Diverse H1 2018 domestic green bondissuance

500 m

1,000 m

1,500 mGeographically, the Chinese issuers of green bonds are spread
unevenly across China with a heavier concentration in east China.
Beijing, Anhui Province and Guangdong Province are in a leading
position for green bonds issuance in H1 2018 with USD1.3bn,
USD1.1bn and USD1.0bn issued respectively.
Guangdong is one of the five green finance pilot zones approvedby the State Council. Starting from 2017, Huadu District took thelead in issuing under the “1+4” policy of green finance and thearea will arrange a special fund of no less than RMB1bn for fiveconsecutive years to support the development of green financethrough instruments such as green bonds.

Use of proceeds (CBI definition)
45.6%
Land Use
1%
Waste
11%

0.5%

offshore

Shanghai Stock Exchange

Shenzhen Stock Exchange

China Interbank Bond Market

Water
8%

InterOTC
Domestic issuance continues to be dominated by placements
through the interbank bond market: 76% of domestic issuance in
H1 2018. The second largest venue was Shanghai Stock Exchangewith a 22% market share domestically.
Hengan Electrical Engineering’s debut green bond issued on theInterOTC market has also been included into our database.
InterOTC operates as a system for the issuance and trading ofprivate placement equity and bonds.
Although many private placement deals have relatively low levelsof disclosure, we would include the bond in our database as longas the information on intended use of proceeds is disclosed andwe can determine alignment with international green definitions.

Low
CarbonTransport
30%

Adaptation
4%

Renewable
Energy36%

Low
CarbonBuilding
10%

Renewable energy is the largest category, with USD3.4bn green
bond proceeds being allocated to it in H1 2018. Large allocations
to the sector were made by Bank of China and ICBC’s overseas
green bond issuance. For example, ICBC (London)’s Certified
Climate Bonds are backed by multiple onshore wind and solar
farms across different provinces in China and in Pakistan as well as
the Beatrice Offshore wind farm project in Scotland.

China Green Bond Market Mid-Year Report 2018 Climate Bonds Initiative2

Non-financial corporate issuers Suntien Green Energy, Envision
Energy and Ming Yang Smart Energy issued their debut green
bonds to finance wind farms or for turbine manufacturing.
Allocations to Low Carbon Transport make up the second largest
proportion in the mix. Tianjin Rail Transit brought the first offshore
green bond issuance from a Chinese metro operator to the London
Stock Exchange and Luxembourg Stock Exchange.
Urban mass transit operator Nanjing Metro, for example, issued agreen ABS which is secured on rents and receivables fromcommercial properties along the metro lines and from shops andadvertisements in stations, marking the first metro operator frommainland China to use a land value capture model to financemetro projects.
Building on Q1 momentum, green proceeds used for Low Carbon
Buildings continued to grow in Q2. Harvest Capital Management
and CECEP Group brought their second green CMBS with the samestructure, where underlying asset is an office building owned by
China Energy Conservation and Environmental Protection (CECEP)
Group. The building received both the LEED Gold certificate andChina Green Building Label (GBL) two-star certificate.

H1 2018 sees rise in exclusions due to high working
capital allocations
The proportion of green bonds that are not aligned withinternational green bond definitions has increased, making up 28%of the total green bond issuance from China in the first half of theyear. On a very positive note, disclosure seems to be less of anissue compared to 2017, with fewer exclusions due to insufficient
information on use of proceeds.
4

74% of H1 2018 issuance benefits from an external
review
20% of H1 deals from Chinese issuers were Certified Climate
Bonds, including ICBC London’s USD1.6bn and Bank of China’s
USD1bn (Zhongcai Green Financing and EY provided verifications
respectively).
Another 54% benefit from a second party opinion or an assurance
from a list of reviewers that keeps getting longer.
74% of H1 2018 issuance benefits from an external review

USD Billions

3
2
26%
1
54%
0
H1

H1

2017

2018

20%

Lack of disclosure
Differences between Definitions
General working capital
Nearly half the exclusions relate to deals, in which over 5% of theproceeds were allocated to general working capital. Although thisis acceptable under the guidelines released by National
Development and Reform Commission (NDRC), international
definitions are tighter and seek to ensure that funds go towards
capital asset investments, which contribute directly to reducing
GHG emissions.
Another 45% of the excluded deals are cases where the proceeds
are allocated to areas defined by China’s local green bondguidelines but not aligned with international ones.

Climate Bonds Certified
Sustainalytics
Lianhe Equator
CECEP Consulting
KPMG
Dagong Global Credit Rating
Golden Credit

9%
8%
6%
6%
6%
7%
4%
...

n.a
CICEROEY
China Credit Rating
Zhongcai Green Financing
CCXI
Pengyuan

Suatainalytics and CICERO are among the top external reviewers
primarily due to the offshore green bond deals. For example,
Sustainalytics provided SPOs for Beijing Capital and Tianjin RailTransit; CICERO – for Modern Land and ICBC (Asia). Lianhe
Equator, EY and CECEP Consulting are the top reviewers in thedomestic market.

China Green Bond Market Mid-Year Report 2018 Climate Bonds Initiative3

Use of proceeds (Top 20 issuers in H1 2018)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Renewable Energy

Low Carbon Transport

Low Carbon Building

Water

Waste

Land Use

ICT

Industry

Adaptation

Policy update
PBoC strengthens supervision of green bond allocations
In March, People’s Bank of China (PBOC) issued a circularon strengthening the supervision of green bonds issued byfinancial institutions. Its focus is on issuers’ operating
status, authentication and progress in allocating theproceeds to green projects, compliance with screening anddecision-making procedures, and impact reporting. The
circular comes with regulations on information disclosure.
They require regular reporting from green bond issuers on
use of proceeds and prescribe templates for quarterly andannual reporting.
Hong Kong to launch Green Bond Issuance Programme
On 28 February, the Hong Kong SAR government
announced in the fiscal budget its plan to launch a Green
Bond Issuance Programme of up to HKD100bn. The sums
borrowed will be credited to the Capital Works Reserve
Fund to provide funding for green public works projects of
the Government. A Green Bond Grant Scheme will also be
introduced, under which green bond issuers using theGreen Finance Certification Scheme, launched by the Hong
Kong Quality Assurance Agency in January, will get up to
HKD800,000 subsidy for each issuance.
PBoC to include green bonds and green loans as eligible
MLF collateral
On 1 June, PBoC announced that it would expand the scopeof the Medium Term Lending Facilitation (MLF) to include
green bonds and green loans as eligible collateral. MLF
operations already accept treasury bonds, central bankbills, bonds issued by China Development Bank and otherpolicy banks, local government bonds, as well as corporate
bonds with AAA credit rating as collateral. According to
PBOC, the expansion of the scope of MLF collateral will help
guide financial institutions to step up their support for thegreen economy.

Joint circular by eight ministries to support green supply
chain innovation and pilot related green bond issuanceIn late April, the Ministry of Commerce (MoC), the Ministryof Ecology and Environment (MoEE) and six other ministries
jointly issued the "Notice on Carrying out Supply Chain
Innovation and Application Pilots". It highlights thedevelopment of a green supply chain as a key task and aims
to guide local enterprises in the implementation of theconcept of green development. The ministries seek tofacilitate quality improvements in the ecologicalenvironment.
MoC, Ministry of Industry and Information Technology,
Ministry of Agriculture and Rural Affairs, MoEE and the
Quality and Technology Supervision Bureau at all levels will
strengthen business guidance on the circulation economy,
industrial and agricultural supply chains, the greening andquality standards of supply chains. Ministries will also ramp
up their support for the pilots through researching andintroducing policy measures related to fiscal budgets,
taxation, finance, land, etc.
The PBoC and the former China Banking Regulatory
Commission (CBRC) at all levels intend to strengthen theguidance and supervision of the development of supply
chain finance, research relevant support policies, ensure
equality between all domestic and foreign-funded
enterprises and institutions, and create a fair competitivemarket environment. Priority is given to supporting eligible
pilot companies to issue corporate bonds, improving thequality of ex-ante and ex-post risk management, andpromoting the healthy and stable development of supply
chain finance.

China Green Bond Market Mid-Year Report 2018 Climate Bonds Initiative4

News and events
Q1 2018

Q2 2018

ADBC signs MoU to display green bonds on LGX

Shanghai Stock Exchange (SSE) released its Green Finance Vision
and Action Plan 2018-2020

On 23 January, the Luxembourg Stock Exchange (LuxSE) signed a
MoU with the Agricultural Development Bank of China (ADBC), thesecond largest policy bank in China, to set up an access scheme todisplay ADBC’s green bonds and sustainability bonds, on the
Luxembourg Green Exchange (LGX). The collaboration would help
International investors gain access to detailed information in
English about Chinese green bonds issued by ADBC, traded on the
Chinese Interbank Market (CIBM) and accessible through the Bond
Connect scheme. The information went live on 9 March.
2nd meeting of China-UK Green Finance Taskforce
The second meeting of China-UK Green Finance Taskforce took
place in London on 19 March. It was co-hosted by the City of
London Corporation Green Finance Initiative and Green FinanceCommittee of China Society for Finance and Banking. Featured
topics included promoting green asset securitisation in bothcountries, Greening the Belt and Road Initiative, analysing thecorrelation between ESG and financial performance, as well as thelaunch of a joint pilot programme on implementing the TCFD
recommendations for climate-related financial disclosures.
A strategic cooperation agreement was signed by both parties in
Beijing on 26 March, officially launching the China-UK Green
Finance Center to further promote green finance cooperation
between the two countries. The Center will conduct research on
related topics and organize seminars and other activities, as well as
explore the development of green technology companies andfinancial technology companies in the medium term.
Leading Chinese Green Bond Issuers attended 2018 Climate
Bonds Annual Conference in London
From 19 to 21 March, the 2018 Climate Bonds Annual Conference
and the 3rd Annual Green Bond Pioneer Awards Presentation were
held in London. Over 600 international market actors, leaders andpolicymakers from 55 nations participated in the events, to discussand debate how to scale the global green bond market frombillions to trillions. The conference featured China Green Bond
Investor Forum on 19 March, connecting Chinse green bondissuers with international investors.
Participating Chinese Green Bond Issuers at the Forum included
Industrial and Commercial Bank of China, Bank of China,
Agricultural Development Bank of China, Industrial Bank, Shanghai
Pudong Development Bank, Jiangsu Bank, Huzhou Bank, Modern
Land (China) Co. Ltd. and GCL Group.
LuxSE and Shanghai Clearing House sign MoU to enhance
visibility of Chinese green bonds
On 20 March, LuxSE and Shanghai Clearing House signed a MoU tofacilitate access to Chinese green bonds for the international
investor community. This will enhance international visibility andtransparency of Chinese green bonds.

On 25 April, SSE issued the “Shanghai Stock Exchange's Servicing
Green Development and Promoting Green Finance Vision andAction Plan (2018-2020)”. It points out that the SSE intends tosupport the development of green finance in five aspects, namely
to promote the stock market, to actively develop green bonds, tostrongly promote green investment, to deepen international
cooperation in green finance and to strengthen green financeresearch and publicity. 14 specific measures are foreseen toachieve these goals.
Huzhou held a symposium to mark the first anniversary of green
finance pilot zones
The “Green Finance Reform and Innovation Pilot Zone Construction
Symposium” was held in Huzhou, Zhejiang on the eve of the firstanniversary of the establishment of green finance pilot zones infive provinces.
On 14 June 2017, the State Council approved the overall plan forthe development of green finance and innovation pilot zones in
Guangdong, Guizhou, Jiangxi, Zhejiang and Xinjiang. Each pilot
zone focuses on different aspects of green financing, including
growing green bond issuance. Various pilot zones have announced
experimental programs or to-do lists on developing green loans,green bonds and green insurance, and have committed toaccelerating the construction of a diverse green financial system.
Over the past 12 months, the five provinces have actively explored
and implemented the overall plan approved by the State Council inaccordance with the local situation. That said, Deputy Governor of
PBoC, Chen Yulu also stressed that the green financial reform pilot
zones are still facing some problems and challenges during thedevelopment stage. There is an urgent need to forge ahead thelaying of foundations. This includes the establishment ofstandards, information and related market infrastructure.
PBoC and HKMA co-hosted a seminar in Hong Kong to explore
green finance opportunities
On 15 June, the Research Bureau of the People's Bank of China andthe Hong Kong Monetary Authority co-hosted a joint seminar
entitled “Mainland and Hong Kong Green Finance Opportunities”
in Hong Kong. It brought together key policymakers and market
experts to discuss green finance policy and market development in
Mainland China and Hong Kong, and explore how Hong Kong can
support and capture opportunities from the Central Government’s
national strategy on sustainable development.
Second Climate Bonds Certified Green Bond from ICBCThe Industrial and Commercial Bank of China - London branch(ICBC London) has listed a USD1.58bn equivalent green bond on
the London Stock Exchange International Securities Market (ISM)on the 15th of June. The LSEG announced that the listing, partof ICBC’s USD10bn MTN programme, is the largest ever green
bond listing on the London Stock Exchange and the first Chinese
issuance on ISM.

China Green Bond Market Mid-Year Report 2018 Climate Bonds Initiative

5

Climate Bonds China green bond database assessment methodology
Certified Climate Bond certified against the Climate
Bonds Standard and Sector Criteria

Bond meets CBI UoP andtransparency requirements

AlignedBond does not meet CBIrequirements

Not aligned

Bond meets CBI UoP andtransparency requirements

AlignedBond does not meet CBIrequirements

Not aligned

Bond has anexternal review

Bond labelled as'green' by issuer

AlignedBond has noexternal review

The Climate Bonds Initiative screens self-labelled green bonds forinclusion in the CBI Green Bond Database.
Step 1: Identify green-themed, labelled bonds
A green bond must be labelled as environmentally beneficial by
the issuer. The most common label is ‘green’, but others such as
solar, renewable energy, energy efficiency and sustainability arealso eligible.
The label should appear in a public document such as press releaseor bond prospectus. Alternatively, the issuer can obtain a green
bond assessment, evaluation or rating.
Step 2: Screen the projects or assets for alignment with the
Climate Bonds Taxonomy
Each bond is reviewed based on the green credentials of the use ofproceeds. This may be earmarked proceeds for asset-linked, seniorsecured or unsecured bonds, or underlying assets for an ABS. The
key is that the asset is green.
At issuance, the issuer must declare the eligible assets or project
categories. Common practice is issuers link the deal and green
bond framework with the Green Bond Principles (GBP) or China’s
domestic green bond guidelines, such as those released by the
PBoC or NDRC, and then obtain an external review to confirm
compliance. However, compliance with GBP or Chinese regulators’
guidelines does not automatically guarantee the inclusion in the
CBI Green Bond Database. The GBP list and some of the green
bond guidelines show high-level indicative assets, whereas the
Climate Bonds Taxonomy and the database inclusion criteria areasset-specific and exclude certain categories such as fossil fuels
and anything that extends the life of fossil fuel assets.

Step 3: Evaluate the use of proceeds
Climate Bonds’ focus is climate change mitigation and adaptation.
Only bonds which are expected to allocate at least 95% ofproceeds to aligned green assets could be included in the CBIGreen Bond Database. If more than 5% of the proceeds are used or
expected to be used for funding operations or assets that do notalign to the Climate Bonds Taxonomy, the bond will not be eligible
for inclusion.

Climate Bonds Taxonomy
The Climate Bonds Taxonomy provides broad guidance forprospective green bond and climate bond issuers and investors.
The aim of the taxonomy is to encourage common definitions
across global markets, in a way that supports the growth of acohesive thematic bond market. The Climate Bonds Taxonomy
consists of eight categories:
•
•
•
•
•
•
•
•

EnergyTransport
Buildings
Water management
Waste management & pollution control
Nature-based assets, including land use, agriculture & forestry
Industry & energy-intensive commercial
Information technology & communications (ICT)Low carbon technologies included under the taxonomy evolve overtime as science progresses. The taxonomy diagram and moredetailed information are available on the CBI website.

Exclusion overview: Climate Bonds publishes the reason for exclusion of bonds from the CBI database in its market blogs. The tablebelow summarises the exclusion categories and provides examples of proceeds allocation that may lead to exclusion.

Exclusion category

Proceeds allocation examples

Not aligned with Climate Bonds Taxonomy

Clean coal, rail lines mainly transport fossil fuels

Over 5% allocated to funding operations

Operating cost, working capital, general corporate purposes

Insufficient information

No disclosure and limited information

China Green Bond Market Mid-Year Report 2018 Climate Bonds Initiative6

China Climate-aligned Bond Index
ChinaBond China Climate-aligned Bond Index is theworld’s first climate related bond index, compiled incollaboration between China Central Depository &Clearing Co. Ltd, China Energy Conservation andEnvironmental Protection Consulting Co. Ltd (CECEP) andthe Climate Bonds Initiative. The index identifies a broadlist of bonds that are supporting low carbon and climate
resilient projects as defined by the Climate Bonds
Taxonomy and the China Green Bond Endorsed Project
Catalogue. The index was released in September 2016.
As of 30 June 2018, the ChinaBond China ClimateAligned Bond Index comprised 336 bonds amounting to
RMB1.34 trillion, with average maturity of 4.11 years.
The 1-year and YTD return rate of the index is 3.86%.

Total return for ChinaBond China Climate-aligned Bond Index
Total return index

1 Month

1 Year

3 Years

5 Years

H1 2018

ChinaBond China Climate-aligned Bond Index

0.76%

3.86%

13.66%

28.60%

4.59%

Top 10 constituent bonds in ChinaBond China Climate-aligned Bond Index
Short CodeIssuerMarketIssuer Type

Weight of market value

1280219

China Railway

China Interbank

Government-backed entity

1.73%

1480174

China Railway

China Interbank

Government-backed entity

1.61%

1380241

China Railway

China Interbank

Government-backed entity

1.60%

1380254

China Railway

China Interbank

Government-backed entity

1.58%

1180164

China Railway

China Interbank

Government-backed entity

1.57%

0980135

China Railway

China Interbank

Government-backed entity

1.55%

1080105

China Railway

China Interbank

Government-backed entity

1.52%

1628001

Shanghai Pudong Development Bank China Interbank

Commercial Bank

1.50%

1280175

China Railway

China Interbank

Government-backed entity

1.49%

1628022

Bank of Communications

China Interbank

Commercial Bank

1.46%

Data source: CCDC

Climate Bonds Initiative will launch a public database of China’s green bonds which are aligned with international green
definitions on CBI Chinese website in early August!
*Note on figures: Figures used in this report refer to both onshore and offshore green bonds issued by entities domiciled in mainland China, and green
panda bonds unless otherwise stated. Internationally aligned green bonds are those aligned with both local and international definitions of green. Greenbonds issued by Hong Kong and Taiwan domiciled entities are not included in the figures.
This report produced by Climate Bonds Initiative in partnership with China Central Depositing and Clearing Co. (CCDC)

July 2018

The report is also available in Chinese

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Disclaimer: The information contained in this communication does not constitute investment advice in any form and the Climate Bonds Initiative is not an
investment adviser. Any reference to a financial organisation or debt instrument or investment product is for information purposes only. Links to external
websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for content on external websites. The Climate Bonds Initiative
is not endorsing, recommending or advising on the financial merits or otherwise of any debt instrument or investment product and no information within thiscommunication should be taken as such, nor should any information in this communication be relied upon in making any investment decision. Certification
under the Climate Bond Standard only reflects the climate attributes of the use of proceeds of a designated debt instrument. It does not reflect the credit
worthiness of the designated debt instrument, nor its compliance with national or international laws. A decision to invest in anything is solely yours. The Climate
Bonds Initiative accepts no liability of any kind, for any investment an individual or organisation makes, nor for any investment made by third parties on behalf of
an individual or organisation, based in whole or in part on any information contained within this, or any other Climate Bonds Initiative public communication.

China Green Bond Market Mid-Year Report 2018 Climate Bonds Initiative

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