PBOC-UNEP: Establishing China's Green Financial System

Release time:2018-11-01

In 2014 the Research Bureau of the People’s Bank of China convened a Green Finance Task Force made up of 40 experts from ministries, financial regulators, academics, banks and other financial institutions, complemented by international experts brought together by the UNEP Inquiry to consider the steps that China could take to establish a green financial system. 

This report is the outcome of this process, and in it the Research Bureau of the People’s Bank of China presents an ambitious framework of recommendations.

The recommendations cover four broad areas:

· Specialized investment vehicles to support green investment, including green banks and funds

· Fiscal and financial support, especially to promote green bonds and green IPOs;

· Financial infrastructure covering for example carbon markets, green credit ratings and stock indices

· Infrastructure, including provisions to advance environmental lender liability, and compulsory environmental liability insurance and disclosure of environmental information.

The main report is complemented by a bilingual summary, as well as detailed background reports on the theoretical framework, lessons from international experience and on each of the fourteen recommendations.

Download the full report here.