China has taken a step towards expanding financing for clean energy and environmental protection with plans for a pilot program for green corporate bonds to be traded on the Shanghai Stock Exchange (SSE).
Shanghai Stock Exchange will shortly be releasing rules to regulate the issuance of green bonds. These rules have been drawn up in concert with the International Capital Market Association (ICMA). The SSE is also a member of ICMA.
During the trial, issuers are required to disclose details of the projects that they will invest in using proceeds of the bond. The SSE will be encouraging firms to get an independent professional assessment on whether the projects qualify as green.
