The People's Bank of China, the central bank of the People's Republic of China, and the European Investment Bank, the European Union’s long-term lending institution, today announced a joint initiative intended to combine policy and market best-practice and strengthen the framework for green investment.
The initiative intends to provide a clear framework for analysis and decision-making in green finance. Development of a common language will enhance the confidence of Chinese and international investors to support green finance through more consistent definitions and methodologies.
“China and the European Union jointly recognise the importance of strengthening investment in green finance to support sustainable growth, better protect the environment and tackle a changing climate change. China’s ambitious policy initiatives to establish the Green Financial System, outlined by the People's Bank of China and government bodies last August, demonstrate the same vision as the EIB’s commitment to mobilise new investment for green finance and contributing to development of best practice in climate finance. Both the People's Bank of China and the European Investment Bank recognise the importance of ensuring investor confidence in green finance and look forward to sharing their experience to facilitate green investment.” said Jonathan Taylor, European Investment Bank Vice President.
“As signatories of the Paris Agreement, the European Union and China are committed to strengthening the global response to the threat of climate change and enhanced transparency of green finance. Putting theory into practice through improving accountability and aligning the financial system with climate policies is crucial to successfully tackle climate change. This new cooperation between leading Chinese and European financial institutions demonstrates a clear commitment to enhance the role of capital markets to support green finance and represents a strategic contribution to this endeavour.” said Hans-Dietmar Schweisgut, Ambassador of the European Union to China.
Reflecting the crucial role of capital markets in financing green investment experts from the China’s Green Finance Committee and the European Investment Bank will examine current classification of green bonds to map and compare respective approaches to green projects eligibility. This will use references including the Green Bond Endorsed Project Catalogue of the China Green Finance Committee as well as the Common Principles for climate finance tracking used by the Multilateral Development Banks (MDBs) and the International Development Finance Club (IDFC).
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