The proceeds from green bonds will no longer be allowed to go to certain fossil fuel energy projects, a statement from the People’s Bank of China (PBOC) said Wednesday, in order to bring the country’s green finance more in line with international standards, reported Caixin.
The updated list of industries and projects eligible to be funded by green bonds no longer includes “the clean use of coal and other fossil energy,” thePBOC statement said.
Thelistwas jointly issued by the PBOC, the National Development and Reform Commission and the China Securities Regulatory Commission, and comes into effect from July 1. It revises a similar list issued in 2015.
The PBOC said the removal of fossil energy projects aims to make China’s green bond standards stricter. “Coal and other fossil energy are high carbon emission projects in nature, and they are not supported by global mainstream green bond standards,” the central bank said.