China's central bank has unveiled rules on issuing green bonds by policy banks, commercial banks and other financial institutions. It aims to help environmental protection industries to gain access to funds.
Green bond issuers would be allowed to invest in high-grade, liquid money market instruments, and some green bonds would be included in collaterals for the central bank's policy operations. Proceeds from such issues could only be invested in green projects.
The central government will offer policy support to help banks boost green loans. China is trying to develop a green financial system to help contain the cost of combating pollutions.
A task force under the central bank estimates that achieving environmental goals under the five-year plan covering 2016 to 2020, will require an annual investment of at least 2 trillion yuan or about $320 billion.