China Association of Financial Market Institutional Investors launched sustainability-linked bonds. These aim to play a positive role in the bond market by helping and encouraging businesses to develop sustainably. There are no specific requirements on the use of raised funds, it allows companies that cannot issue ‘green bonds’ in the early stage of development to participate in the sustainability bond market. That reflects the issuer’s positive attitude towards sustainable development and shows a good corporate image. ‘Green bonds’ are an important part of the ‘green finance’ system and are of great significance for achieving the “30·60” target by promoting a green transformation of the economy. China’s green bond market has developed rapidly over the past five years, with an annual issuance of more than 200 billion yuan, which has promoted a green upgrade of some industry sectors.
Compared with green bonds, social bonds and sustainable development bonds are a highly flexible product. While providing financial support for business, they also lock in the issuer’s company with emission reduction targets of the main business and urge companies to achieve sustainable development in a planned and targeted manner, the government claims. Green bonds are important instruments for funding more environmentally friendly business. They refer to securities that are specifically used to support green industries, green projects or green economic activities that meet prescribed conditions and are issued in accordance with legal procedures, while repaying the principal and interest in accordance with the agreement. The new Green Bond Catalogue is a professional list specifically used to define and select green projects and green fields that meet the scope of support and application of various types of green bonds.