Beijing Launch: New ChinaBond China Climate-Aligned Bond Index: Post G20 Green Finance in action: Report on Symposium: Translated from Chinese

Green Finance Players Gather post G20


Climate Bonds China specialist Dai Weihui (Lily) speaking at the launch.

 

Yesterday’s Beijing Symposium saw key players from China’s green finance sector gather for the official launch of the new ChinaBond China Climate-Aligned Bond Index, a world first.

A joint initiative of China Central Depository & Clearing Co. ltd, CECEP Consulting and the Climate Bonds Initiative, the new Climate-Aligned Bond Index is now available on Bloomberg, Thomson Reuters, Wind and Finchina.

Climate Bonds has been sent a direct translation of proceedings including comments from our very own China specialist and guest speaker Dai Weihui (Lily).

The account provides a window into where and how the new CCDC/CEDEC Consulting/Climate Bonds Initiative Index fits within domestic reforms to build green finance markets and improve transparency and disclosure for investors.

Read on…

 

Symposium on the Marketing of the ChinaBond China Climate-Aligned Bond Index and Information Disclosure of Green Bonds

The symposium on the marketing of the Chinabond China Climate-Aligned Bond Index and information disclosure of the green bonds has been held in Beijing on September 19.

Shui Ruqing, Chairman of the China Central Depository & Clearing Co. Ltd (CCDC), attended the meeting and gave the welcome speech.

 

 

Representation from PBOC, Green Finance Committee, major banks & ratings agencies

Ma Jun, chief economist of research bureau in People’s Bank of China and the director of the Green Finance Committee of China Society of Financing and Banking (referred to as Green Finance Committee), An Guojun, associate researcher at the Chinese Academy of Social Science Financial Research Institute and deputy secretary-general of the Green Finance Committee, and about 80 experts from China Development Bank, Agriculture Development Bank, Export-import Bank, Climate Bonds Initiative and CECEP Consulting, bond rating agencies, climate bond issuers and journalists, also attend the meeting.

 

Live Streaming on major platforms

The meeting was live on Wind 3C meeting video broadcast platform and Da ZhiHui live broadcast platform.

 

CCDC Chair Opening Address

Shui Ruqing, Chairman of CCDC, outlined his understanding of green finance and green bond developments and summarized the key achievements by CCDC in the green bond field.

He said that to realize the sustainable development of the global economy, green finance has aroused widespread interest of international society and it has become an important issue in the recently concluded G20 summit in Hang Zhou.

China is in a key period of transformation of economic development and building a green financial system will help to speed up our country’s economy transformation to a green economy and also promote economic growth potential.

Shui Ruqing said in his speech that CCDC, which is part of the core financial infrastructure of the country’s bond markets, actively seeks to be the Director Unit of the Green Finance Committee, gives a service in the whole of life infrastructure of green bonds, issues green bond series indices, explores the identification of the stock of green bonds and promotes the communication of the related experts.

These steps have been fundamental and pioneering contributions.

Looking forward to the future, CCDC will continue to be committed to their role, promote the innovative development of the green bond market and make contributions to China’s green financial strategy implementation.

 

PBOC overview including G20 summary

Ma Jun, the chief economist of research bureau in People’s Bank of China and the director of the Green Finance Committee, commended the achievement of the CCDC and their work in the green bonds field.

He highlighted key aspects of recently published Guidelines for Establishing Green Financial System (referred as Guidelines) and the G20 Green Finance Synthesis Report, and introduced the growth in Chinese green finance. He pointed out that the China Climate-Aligned Bond Index is an a step forward in China's green bond development.

He emphasized that the Guidance is a positive policy signal for social capital to reduce the uncertainty raised by some green investors.

Ma also stated the green bond market provides new investment instruments for investors and new long-term financing tool for issuers, leading to more green investment. He believed there are 5 ways to boost green bonds market: integrate China green bond definitions, improve mandatory environmental information disclosure systems, develop various financial products forgreen finance such as index products, cultivate the capability  of third party professional organizations, and establish green bond ratings.

 

ChinaBond profiles new Index

During the meeting, Niu Yurui, deputy manager of the ChinaBond Pricing Center, introduced the ChinaBond China Climate-Aligned Bond Index from the perspectives of a development background, index product introduction and future expectation.

CCDC has partnered with Climate Bonds Initiative and CECEP Consulting to launch ChinaBond China Climate-Aligned Bond Index, which is the global first climate-aligned bond index and it will fill the gap that exists in this field. According to the data, the base date of the ChinaBond China Climate-Aligned Bond Index is set at Dec 31, 2009 with a 100 base value.

Up to August 31, 2016, it consists of 210 constituents with average market capitalization weighted duration of 5.64, 9.49 percent return in the recent year and the total market value of 1.33 trillion RMB.

He noted the the index is now available on Bloomberg, Thomson Reuters, Wind and Finchina.

 

Climate Bonds specialist overview and market analysis

Dai Weihui from the Climate Bonds Initiative outlined fundamental features of the global climate-aligned bond market. Climate-aligned bonds are used to finance low carbon and climate adaptive infrastructure. There is clear authentication by the professional institutions for green project green bonds but in some financing of climate related assets there is yet to be certification by a professional institution of green or climate aspects of bonds.

Climate-aligned bonds include the bonds in the fields of energy, transportation, construction and industrial, water, waste and pollution control, agriculture and forestry.  

At present, global climate-aligned bonds market amounted to USD$694 billion. The release of climate-aligned bond index is helpful to promote market knowledge, assist global investors become more familiar with bonds, encourage sustainable investment, and promote green bond market liquidity and its overall development.

 

CECEP Consulting Keynote Address

Liao Yuan, vice general manager of CECEP Consulting, delivered a keynote address.  He emphasized that environment information disclosure is key to the healthy development of green bond markets and talked about the CECEP experience in the process of developing the ChinaBond Green Series Bond Index and the new ChinaBond Climate-Aligned Bond Index.

Regarding content disclosure information, disclosure should satisfy the Green Bond Principles, the 2015 Point No. 39 policy document of the People’s Bank of China and other related requests to disclose the use of capital raised for investment the green projects, progress of the green project and the environment benefits of the project.

As for specific disclosure paths, issuers with full capability can choose the disclosure path by themselves and complete regular evaluations, calculation and disclosure on the green bonds invested into the project.

Issuers with a lack of capability can appoint a third party to complete the work.

 

Roundtable discussion

Comments from Agricultural Development Bank

Liu Youhui, head of treasury department in Agriculture Development Bank, shared experiences in green identification of existing bond. She noted that agriculture, farmer and rural areas sectors  highly related to green development and suggested these areas should be incorporated by the China Green Bond Endorsed Project Catalogue. 

She recommended to integrate green financial policies, innovate in green financial products, and issue different green bonds in different currencies for various investors and issuers.

 

Comments from China Development Bank and Export Import Bank

Yu Wangshun, deputy head of treasury department in China Development Bank, and Zhao Ying, deputy head of treasury operation department in Export-Import Bank, presented on the achievement of both banks in the green finance field. Yu suggested the China bond market should process in four steps to achieve sustainable development: policy framework, market infrastructure, operations and internationalisation.

Zhao suggested to there was also a need to simplify approval processes of green bonds, lower issuance costs and encourage institutional green investors.

 

CECEP, Climate Bonds & CCDC comments

Representatives from CECEP Consulting, Climate Bonds Initiative and CCDC also gave expert commentary in turn.

 

Investor Confidence and Growing China Green Finance Markets

Participants  in the conference also appealed to investors assist to enhance confidence in the domestic green bond market. As the government attaches great importance to green finance especially since the publishing of “Guidance on building green financial system”, China is embracing a strong development period of green finance.

The investment in green industry through green indices, green funds and green bonds gives insitutional investors opportunities for returns as well as building the development of green industry.

 

Conclusion - ChinaBond Green Bond Index Committee

At the end, expert particpants suggested CCDC establishing a ChinaBond Green Bond Index Committee which will guide relevant work in index methodology and maintenance.

 

-------------------------------------------

 

Well that’s certainly a comprehensive account of the Symposium proceeedings and the launch of a new green index. 

We hope you’ve enjoyed this latest read fresh from Beijing.

More to come as the ChinaBond China Climate-Aligned Bond Index develops.

Remember, the index is available on Bloomberg, Thomson Reuters, Wind and Finchina.

 

Till next time,

Climate Bonds Communications

 

中债气候债指数推介暨绿色债券

信息披露座谈会在京召开

 

中债气候债指数推介暨绿色债券信息披露座谈会9月19日在京举行。中央国债登记结算有限责任公司(以下简称“中央结算公司”)水汝庆董事长出席会议并致辞。

中国人民银行研究局首席经济学家、中国金融学会绿色金融专业委员会(以下简称“绿金委”)主任马骏,绿金委副秘书长安国俊、中国人民银行金融市场司、中国银行间市场交易商协会以及来自国家开发银行、农业发展银行、进出口银行、气候债券倡议组织(Climate Bonds Initiative,CBI),中节能咨询有限公司等机构近80位业内专家、债券评级机构、气候债券发行人代表及新闻媒体记者参加会议。此外,会议也通过万得3C会议视频直播平台和大智慧视吧直播平台进行了互联网在线直播。

水汝庆董事长在致辞中表示,为实现全球经济的可持续发展,绿色金融已受到国际社会普遍关注,在刚刚结束的G20杭州峰会上,绿色金融也成为一个重要议题。中国正处于经济发展模式转型的关键时期,构建绿色金融体系,有助于加快我国经济向绿色化转型,提升经济、增长潜力。水汝庆董事长指出,作为我国债券市场的核心金融基础设施,中央结算公司积极成为绿金委的理事单位,同时坚持精耕细作,在绿色债券的全生命周期基础设施服务、发布绿色系列债券指数、探索存量绿色债券识别、积极推动业内专家交流等方面,做出了许多基础性、开创性的贡献。展望未来,中央结算公司将继续忠于职守,推动绿色债券市场创新发展,为我国绿色金融战略的贯彻实施贡献力量。

中国人民银行研究局首席经济学家、绿金委主任马骏对近期七部委联合发布的《关于构建绿色金融体系的指导意见》(以下简称“意见”)以及《G20绿色金融综合报告》的亮点进行了解读,向大家介绍了绿色金融发展的最新情况,并对中央结算公司在绿色债券领域的工作成果表示了肯定,他指出,中债气候相关债券指数的发布是一次有益的尝试。马骏强调,《意见》的主要意义在于给社会资本发出政策信号,降低绿色投资者对未来不确定性的预期。马骏还向与会人员介绍了绿色金融研究小组及其提交的《G20绿色金融综合报告》。马骏指出,绿色债券市场为发行人提供了新的中长期融资渠道,为机构投资者提供了新的可投资品种,通过“声誉效应”激励更多的绿色投资。他认为,未来应从五个方面推进绿色债券市场发展:统一我国绿色债券的界定标准;完善强制性环境信息披露制度;开发更多的产品,包括指数产品;培育第三方认证机构,强化质量要求;推动绿色债券评级发展。

本次会议上,中债估值中心牛玉锐副总经理从编制背景、指数产品介绍、未来展望的角度,对“中债-中国气候相关债券指数”做了介绍。“中债-中国气候相关债券指数”由中央结算公司和气候债券倡议组织、中节能咨询有限公司合作编制,是全球首只气候相关债券指数,填补了市场对该类型债券价格走势进行跟踪的空白。数据显示,该债券指数的基期日为2009年12月31日,基点值为100。截至2016年8月31日,指数成份券共210只,平均市值法久期为5.64,近1年财富指数回报率为9.49%,指数总市值约为1.33万亿元。他表示,该指数在彭博、路透、财汇、万得终端上予以转发。

气候债券倡议组织中国区负责人戴伟惠介绍了国际上气候相关债券市场的情况。气候相关债券是用于低碳及气候适应型基础设施融资的债券。据介绍,目前全球气候相关债券的市场规模已达到6940亿美元,其中贴标绿色债券1180亿美元,未贴标气候相关债券5760亿美元。气候债券倡议组织将未贴标债券纳入统计口径的意义主要在于向市场揭示哪些资产、哪些项目、哪些发行人有潜力可以发行绿色债券,只是暂时没有按照相关规定建立发行框架。此次发布的气候相关债券指数有助于促进市场的认知,有助于投资者了解这些债券,鼓励投资,并有助于促进整个绿色债券市场的流动性,促进其发展。

中节能咨询有限公司廖原副总经理以“环境信息披露是绿色债券健康发展的关键”为题,畅谈了在中债绿色系列债券指数和中债气候相关债券指数样本券筛选过程中的体会。他谈到,环境效益信息的披露,从内容看应满足国际共识的绿色债券原则(GBP)及人民银行2015第39号公告等政策文件的要求,披露募集资金投入绿色项目的情况、绿色项目的进展情况、绿色项目的环境效益。在披露时,应坚持简洁、明晰的原则,避免准则要求之外发行人其他信息的泄露。对于具体的披露方式,有能力的发行人可选择自行披露的方式,自行完成绿色债券投向环境效益的评估测算并定期披露;对于其他发行人,可以委托第三方专业机构测算评估绿色项目的环境效益,披露经核证的环境信息。

绿金委安国俊副秘书长主持了圆桌论坛环节。农业发展银行资金部总经理刘优辉分享了存量绿色债券识别的经验,她谈到,三农与绿色有紧密关系,农发行存在着没有冠名绿色、但实际用于发放绿色信贷的“实质绿债券”。农发行三只存量债券纳入中债绿色系列债券指数,率先开启了存量绿色金融债券识别的通道。她呼吁在《绿色债券支持项目目录》中充分考虑三农项目;整合绿色金融相关政策并促进其落地;创新和丰富绿色金融产品,如绿色债券基金等;统一境内外绿色债券标准;丰富绿色债券币种,满足不同投资人和发行人的需求。

国家开发银行资金局副局长余汪顺、进出口银行资金营运部副总经理赵鹰介绍了在绿色金融领域业务发展情况,并对绿色债券市场提出建议。余汪顺副局长建议中国债券市场发展按政策框架、市场基础设施、推动运行、国际接轨四个步骤进行,实现绿色债券市场的可持续发展。赵鹰副总经认为有必要简化绿色债券审批、提高效率,降低发债成本,鼓励专业化绿色投资机构三个方面促进绿色债券市场发展。

中央结算公司研发部宗军主任建议,需明确绿色定义与检验机制,通过“1+X”框架(即,国际统一的标准+符合各国国情的附件)来实现国内、国际两套标准的统一;逐步推进信息披露,通过完善信息披露形成自律机制,检验发行人是否真实地将募集资金投向绿色领域。

与会专家纷纷表示,中央结算公司对于存量绿债的主动识别,这种重实质轻形式的编制理念,符合中国实际,是对多年来从事绿色事业的广大企业辛勤劳动的认可和尊重,有利于鼓励和引导绿色投资,也是助力国内绿色债券市场发展的一项工作创新。后续市场的发展需在加强规范、持续信息披露方面进一步推进完善,迫切需要包括发行人在内的各类市场机构在绿色债券信息披露方面作更多努力,包括提高发行相关主体的环境信息披露意识,明确披露的标准、原则和内容框架,促进第三方认证的标准化,推动实现持续、公开的信息披露。这些是国内绿色债券市场以及绿色债券指数迈向国际市场、得到国际投资者认可的关键和重要基础。绿债指数编制应逐步提高样本债券信息披露规范性要求,进一步提高指数公信力。

也有与会专家呼吁投资人增强信心,随着国家对绿色金融的重视,尤其是《关于构建绿色金融体系的指导意见》的出台,中国正迎来绿色金融发展的黄金时期。通过绿色指数、绿色基金和绿色债券等手段投资于绿色产业,在给投资者带来回报的同时,也将推动绿色产业的发展。

此外,有与会专家提议中央结算公司设立中债绿债指数专家委员会,指导绿色债券指数编制相关工作。

 

Disclaimer: The information contained in this communication does not constitute investment advice and the Climate Bonds Initiative is not an investment adviser. Links to external websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for content on external websites.

The Climate Bonds Initiative is not advising on the merits or otherwise of any investment. A decision to invest in anything is solely yours. The Climate Bonds Initiative accepts no liability of any kind for investments any individual or organisation makes, nor for investments made by third parties on behalf of an individual or organisation.