As the sustainable finance industry continues to develop, more and more terms and expressions are being introduced to finance’s repertoire. Our glossary provides a non-exhaustive collection of green and sustainability terms and expressions recently introduced to the market so that you can build a solid foundation of sustainability knowledge.
The National Development and Reform Commission - China (NDRC) guidance lays out some requirements for allocation of proceeds during the bond term. For example, issuers can use up to 50% of the bond proceeds to repay bank loans and invest in working capital. However, it does not establish rules for management of proceeds and reporting. NDRC’s guidelines also define a list of 12 project categories eligible for green bond issuance, which are largely in line with the catalogue of projects endorsed by People's Bank of China (PBOC). The exception is with nuclear energy, which is included by NDRC but not endorsed by PBOC.
Areas covered by the guidelines are:
- Technology improvement for energy saving and emission reduction
- Green urbanisation (energy saving)
- Energy-saving and environmental protection industry
- Pollution prevention and control
- Circular economy
- Water saving and unconventional water use
- Green urbanisation – transport
- Clean and efficient use of energy
- New energy – hydropower, wind, nuclear, solar, bioenergy, geothermal, shallow geothermal energy, marine and air energy
- Ecological agriculture and forestry
- Ecological civilisation demonstration projects
- Low-carbon industry projects and demonstration projects