The regional leader in green bonds will keep looking at labelling and internationally aligned standards, such as the common ground taxonomy with the EU, experts discussed at ICMA's inaugural summit. Meanwhile transition finance taxonomies are being rolled out in Chinese provinces.
Interest in transition finance is growing, however, despite some countries, including Japan, taking a lead, such vehicles face many challenges, such as low comparability and tech uncertainty.
Bank of China has tapped the European bond market to finance steel projects in Hebei province, in a first of a kind issuance involving a financial institution.
Ahead of the institute’s annual forum that is set to take place this week, the HKGFA team shares its view of sustainability opportunity across HK and GBA.
A combination of stricter requirements in allocating bond proceeds and higher bond yields has made China’s onshore green bonds an increasingly attractive option, says Sustainable Fitch.