China's green bond issuance increases by 14%
Green bond issuance is on the up, with China leading the way. In total, issuance in China reached $13bn in the first half of 2018. This has marked a year-on-year increase of 14%.
According to Renewables Now, a ‘large portion’ of green bond proceeds in China are earmarked for renewable energy.
Green bonds are bonds created specifically to fund projects with positive benefits to the environment, with any proceeds from the bonds being exclusively spent on ‘green’ projects.
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Of the total proceeds from China’s green bonds, about 36% are said to be for renewable energy, including wind and solar, with around 30% to be spent on low-carbon transport.
44% of bond issuance has come from financial corporates such as ICBC (Industrial and Commercial Bank of China) and Bank of China.
In 2017, China raised $30bn in green bonds, making it the world leader in the space. Globally, the green bond market increased by 45% between 2016 and 2017.