China's climate change objectives under the Paris
Agreement will require it to invest a massive amount of capital
into growing its domestic renewable energy generation, as well as
invest in other emissions-reducing efforts. The government of China
has adopted a green financing initiative that includes regulating
its green bond market.
Green bond guidelines have been issued by the various regulators
of the domestic (CNY) bond markets to encourage capital raising.
These bond guidelines have led to RMB 34 billion of issuance in the
first quarter of 2016 alone, with a required target of RMB 300
Although recent developments have made access to the CNY
interbank bond markets easier for foreign investors (e.g.
investment managers of pension funds and insurance funds), it is
important to understand that there are important differences
between international and Chinese green bonds.
Under the Paris Agreement, China has committed to reduce its
carbon dioxide emissions per unit of gross domestic product by
60-65 per cent by 2030 from its 2005 levels, and to increase the
share of its non-fossil fuels in primary consumption to around 20
per cent. This will necessitate a massive investment into renewable
and nuclear energy and away from coal-fired power generation.
According to China's Financial Research Institute at the State
Council's Research Center, this investment translates into RMB
2.9 trillion (US$460 billion) worth of investment annually in the
next five years. The government also wants 70 per cent of that
investment to come from the private sector. It is expected that
potentially RMB 300 billion of this could be annually financed by
The purpose of this paper is to guide investors on some of the
issues relating to investments in green bonds in China. This paper
should be read as complementary to our other
paper on the global green bond markets.
Read the full Briefing by downloading the .PDF
With India presently having a wind power installed capacity of around 32GW, the Ministry of New and Renewable Energy has invited comments on the draft guidelines for procurement of wind power through bidding.
China's privately owned refineries are the new force in the crude oil market. Once sidelined due to Chinese regulations, these refineries are now importing as much as 1.2m barrels of crude oil per day into China.
This short note is to introduce two detailed papers that discuss the justification for the development of an Asian LNG reference price that is not benchmarked against the current ‘Japanese Crude Cocktail' and suggests an approach to how that might be achieved. A short summary of the two papers is provided below.
In order to give impetus to growth in the infrastructure and energy sector, the Government of India has initiated several changes in the regulatory and policy framework governing the sector...
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).