Loopholes may undermine China's green bond market

Caixin reports China’s green bond market is expected to grow to the largest in the world by the end of 2016, but policy loopholes related to third-party verification of these bonds could undermine the market’s credibility, a top economist warned. China issued 58 billion yuan worth of green bonds, or nearly 30 percent of all green bonds worldwide by the end of June, said Industrial Bank Co. researcher Yang Xiongqi on August 11. Yang said China’s current green bond guidelines provide for third-party oversight but suffer from lack of detail. He also advised revising supporting tax and credit policies to expand access to low-interest loans for environmental protection projects.