China is very likely to reach its carbon peaking goal before 2030. The momentum seen in its 2021 green bond issuance will continue to support that. However, green and sustainable financing in China needs to further accelerate on a larger scale to provide the funding required to reach the 30·60 targets. This new report has been produced by Climate Bonds Initiative and China Central Depository & Clearing Co. Ltd Research Centre (CCDC Research), with the support of HSBC.

In 2021, China’s labelled green bond market experienced the highest growth rate since the introduction of the green financial policy framework in 2016. Total labelled issuance in the domestic and international markets more than doubled (2.4 times) to USD109.5bn (RMB706.3bn) from a year earlier, representing the most substantial annual increment by both absolute value and by percentage over the prior five years. Labelled green bonds accounted for around 1% of China’s overall bond market in 2021, indicating vast potential for further growth.

Access the report here