From Bloomberg: “China is set to become a hotbed for the $100 billion market in bonds tied to environmentally-friendly investments as authorities and developers seek alternatives to loans for funding a transformation to clean energy supplies.”
Manuel Lewin, Head of Responsible Investment at Zurich, responded to the news commenting: “China’s interest in green bonds is driven by the ambition to grow its economy sustainably, and the need to combat various environmental challenges. We are pleased to see increased activity in this space in China, both in terms of issuance and policy-level dialogue, and will monitor developments carefully.
“Green bonds can provide a great tool to raise awareness of the environmental challenges in China and how they are addressed; to attract new investor funding for green investments; and for Chinese companies and issuers to signal to investors that environmental risks – as well as opportunities – are being addressed.
“Zurich hopes that the integrity of the green bond market and brand will be safeguarded, both in terms of relevant processes and definitions as it relates to green, but also in terms of market discipline and fair value so that the yield on green bonds reflects the underlying economic risks investors are exposed to.
“The Green Bond Principles (GBP) have proven very effective in supporting growth in the green bond market while safeguarding its integrity, and Zurich very much welcomes the open dialogue between various representatives of the GBP and Chinese authorities interested in fostering the green bond market.”