China debuts landmark sovereign green bond on global stage
Finance Ministry takes green bond push to London Stock Exchange
We’re thrilled to share that China’s Ministry of Finance (MoF) has issued its debut sovereign green bond, denominated in Chinese yuan and valued at USD824m, on the London Stock Exchange. This marks a major milestone: China’s first green sovereign bond and also its first-ever sovereign bond issued overseas.
The initiative was first unveiled in January, following high-level meetings in Beijing between Chinese and UK government officials. Just a month later, in February, the MoF published a comprehensive sovereign green bond framework, outlining that proceeds will be directed toward climate mitigation and adaptation, natural resource protection, pollution control, and biodiversity preservation.
This moment has been years in the making. Back in 2014, Climate Bonds Initiative CEO Sean Kidney served on a People’s Bank of China task force that recommended the creation of a domestic green bonds market. Fast forward to today, and China has built one of the largest green finance markets in the world—a key instrument in the country’s path toward carbon neutrality.
“We are thrilled by China’s inaugural green sovereign bond issuance in London—a landmark event that advances the global green finance agenda,” says Wenhong Xie, Head of China Programme at the Climate Bonds Initiative.
“Backed by sovereign credit and aligned with environmental goals, this issuance addresses the growing global demand for sustainable assets while promoting cross-border investment through high transparency and adherence to international standards. It also establishes a pricing benchmark for RMB-denominated green bonds, encouraging local governments, financial institutions, and corporations to further engage in the green bond market.”
“This milestone will help attract international capital into critical sectors and climate resilience projects, expanding the financing options for China’s green transition.”
This issuance comes at a pivotal moment for global markets, as the volume of sustainable debt aligned with Climate Bonds definitions approaches the USD6tn milestone.
