INTERNATIONAL INSTITUTE OF GREEN FINANCE, CUFE
Chinese Version

Green Bond Focus 11.12 - 17.12

Time:2017-12-26 From: Author:


From December 11 to December 17, there was no green bond issuance in the green bond market.


As of last week, there were 97 green bonds issued in 2017, with a total green bond amount of 188.865 billion RMB. In 2017, a total of 177 non-labeled green bonds were issued, with a total green bond amount of 453.236 billion RMB. In addition, China has issued a total of 4 green bonds overseas in 2017, with an aggregate green bond amount of approximately 38.911 million RMB.

 

Markets

 

Domestic news


1. Shanghai and Shenzhen 300 green leading stock index will be released,

CSI has announced, on January 4, 2018. CSI 300 Green Leading Stock Index, CSI Stock Options Incentive Theme Index and CSI Commentary Subject Index will all be officially released on that date.

The CSI 300 Green Leading Stock Index is based on the “green” assessments of listed companies. The assessment is based on individual scores for companies based on green production and services, environmental protection penalties and other computing companies. The 100 top-rated stocks are selected as the final sample. The Shanghai and Shenzhen 300 green leading stock index has an accumulated market capitalization and free float market capitalization of 13.3 trillion RMB and 4.98 trillion RMB respectively.

Source: China Financial Network

 

International News


1. The European Bank for Reconstruction and Development invests 100 million U.S. dollars in green bond investment vehicles

On December 14, 2017, the European Bank for Reconstruction and Development announced plans to invest 100 million U.S. dollars in the Amundi Planet - Emerging Green One project, a partnership between Amundi, a European asset management company, and IFC, the World Bank Group. This is the first fund exclusively focused on investing in green bonds issued by private sector financial institutions. The European Bank for Reconstruction and Development plans to invest up to 5% of its fixed income funds and has raised more than 1.2 billion US dollars in investment commitments. The fund is seeking to dedicate at least three times its investment to the operating countries of the European Development Bank as part of its regional diversification policy.

Yves Perrier, Amundi's chief executive, said the investments will help increase the demand and supply of green bonds in emerging markets.

Suma Chakrabarti, a financier, notes that to date private-sector financial institutions have issued green bonds worth about $ 500 million, but the European green capital markets in the countries still in their infancy. The new fund is expected to help significantly increase the availability of green finance in the region, raise domestic investor awareness of green capital markets products and support local financial institutions to issue green bonds in line with the principle of green bonds.

Source: asokoinsight.com

 

2. The Nigerian government issues the first sovereign green bond

On December 18, 2017, the Nigerian government issued the first 150 billion Naira (about 420 million U.S. dollars) green bonds to fund green projects aimed at fulfilling Nigerias contribution to the Paris Agreement. The green bond funds are only used for projects with clear environmental and climate benefits.

Patience Oniha, head of the debt management office (DMO), said the pilot project will cost N10.6 billion (about $ 30 million) and the balance will be paid in instalments over the budget period; the Nigerian government will use the money for payments related to green projects. Allegedly, the pilot project will mainly focus on the technology issues and transactions of the Green Bonds. Experimental projects include: Education Incentive Program (EEP), Renewable Energy Micronutrient (REMU), afforestation projects and clean energy transportation.

Source: AllArica.com

 

Policy Academic Trends

 

Policy introduction


1. National Energy Administration released a Notice on Establishing a Environment Monitoring and Evaluation Mechanism to Guide the Healthy and Orderly Development of Photovoltaic Industry

On December 14, 2017, in order to promote optimization and operation of photovoltaic power generation, construction and operations, the NEA released recommendations for industries and investors on how to promote a healthy development of the photovoltaic industry. The National Energy Administration have studied and evaluated mechanisms for the photovoltaic power generation market and issued a circular calling for implementation of the recommendations.

The circular points out that it is necessary to conduct a comprehensive monitoring work for ordinary PV power plants; to establish scientific monitoring and evaluation systems and create comprehensive assessment of binding indicators to determine the combination of evaluation and grading.

The National Renewable Energy Information Management Center is responsible for market environment monitoring and evaluation. The National Energy Board will release quarterly results on the progress.

Source: National Energy Agency

 

2. National Energy Administration Integrated Division released on 2017-2018 heating season clean heating notice

On December 14, 2017, the National Energy Board released guidelines for local governments on how to sustain a clean environment as increased amounts of heating is required for the thousands of households as winter strengthens its grip on the vast northern regions of China. 

According to the guidelines, the National Development and Reform Commission (NDRC) should strengthen coordination and cooperation with relevant authorities, clarify the tasks for ensuring people's livelihood heating, study and formulate scientific and rational measures with strong operational capabilities, and uniformly deploy clean energy sources, clean heating sources and pipelines network lines, energy-saving buildings and other aspects of clean heating work.

Authorities should strengthen cooperation and coordination on clean energy projects by with regards to project land, construction, urban planning and other issues. Authorities should strictly follow the coal to gas policy via the continued improvement to pipeline transport capacity, the implementation of alternative gas sources and ongoing work in preventing gas shortage.

The circular also required that major gas suppliers such as CNPC, Sinopec, CNOOC should make gas supply as planned. State Grid, Mengxi Power Grid and newly-added power enterprises should step up coordination with the coal-to-electricity plan in relevant areas and continue the upgrading of the distribution network to meet the requirements of supporting the heating grid.

Geothermal enterprises should give full play to the advantages of geothermal heating and continuously improve the technical management level by increase.

Coal enterprises should work for the unified deployment of coal production in northern regions to meet the demands of the season and focus on having coal production meet the required capacity to protect people's livelihood in the region.

Source: National Energy Agency

 

3. The Ministry of Environmental Protection issues twelve standards three days, two guidelines, a policy

On December 12, 14 and 15, the Ministry of Environmental Protection released 12 national environmental protection standards, two guidelines and one policy to further improve China's environmental protection system. Relevant policies are promulgated as follows:

December 12: "Environmental Labeling Product Technical Requirements with regards to Paper", "Environmental Labeling Products Technical Requirements for Plastic Packaging Products", "Environmental Labeling Products Technical Requirements with regards to Gas Cooktops", "Environmental Labeling Products Technical Requirements with regards to Digital Copy Equipment", "Four national environmental protection standards” and "Motor vehicle pollution prevention and control technology policy".

On December 14: the "Guidelines for On-Site Verification of Ecotoxicological Test Data for Registration of Environmental Management of New Chemical Substances" was promulgated on the promulgation date.

December 15: "Technical Guidelines for Soil Environmental Investigation and Assessment of Construction Land" and "Direct injection of total hydrocarbons, total methane and non-methane hydrocarbons - gas chromatography" , "Determination of organochlorine pesticides in ambient air by gas chromatography-mass spectrometry", "Determination of organochlorine pesticides in ambient air by gas chromatography", "Determination of polychlorinated biphenyls in ambient air by gas chromatography-mass spectrometry", " Determination of biphenyl gas chromatography ","Ambient air PCB determination of gas chromatography", "Functional area acoustic environment quality automatic monitoring technical specifications ","Environmental noise monitoring system technical requirements".

Source: Ministry of Environmental Protection website

 

4. Notice of the General Office of the National Development and Reform Commission on the Preparation of the 2016, 2017 Annual Carbon Emission Reporting and Verification and Emission Monitoring Plan

On December 15, 2017, the National Development and Reform Commission will organize the annual report on carbon emissions for 2016 and 2017 in accordance with the "13th Five-Year Plan for Controlling Greenhouse Gas Emissions" and the "Interim Measures for the Management of Emissions Trading" and the emission monitoring plan to develop relevant works aimed at doing a solid job in the national carbon emissions trading market-related work, improve the quota allocation method, consolidate the data foundation to ensure data quality.

The circular stipulates that the scope of the carbon emissions reporting and verification and emission monitoring plan formulation for 2016 and 2017 covers key emission industries such as petrochemical, chemical, building materials, steel, nonferrous metals, paper, electric power and aviation. For any year from 2013 to 2017, gas emissions of 26,000 tons of carbon dioxide equivalents (comprehensive energy consumption of about 10,000 tons of standard coal) and above enterprises or other economic organizations are included. Greenhouse gas emissions in line with the above conditions (not limited to the above industries) will be included in the work.

The circular calls for accelerating the accounting and reporting of greenhouse gas emissions and for preparing monitoring plans, organizing third-party verification agencies to verify annual emission reports and supplementary data sheets submitted by enterprises (or other economic organizations), and review emission monitoring plans according to the actual situation using spot checks, expert reviews and other methods to ensure data quality.

Source: National Development and Reform Commission website

 

Academic conference

1. Environmental group "On Road" 2017 Green listed company summit opened

On December 11, 2017, with aim at implementing the wording from the 19th National Congress and promote the construction of ecological civilization and expand the environmental protection industry. The 2017 China Environmental Protection Listed Company Summit, sponsored by the Environmental Chamber of Commerce, took the spirit of "Learning and Carrying out the 19 Great Spirit: Forging Industrial Sword Beautiful China "as the theme, on December 9 in Zhaoqing, Guangdong Province.

Feng Liang, deputy director of the Central NDRC and Central Bureau of Environmental Protection, Ministry of Environmental Protection, Xia Zuyi, deputy director of the Central Bureau of Supervision, Party Secretary, Lai Zehua, China Civil, Commercial editorial director, Huang Wenfu, Environment Chamber of Commerce, and environmental chairman, Zhao Lizhan, all attended the opening ceremony.

Former Vice Minister of the Central United Front Work Department, former Standing Committee Member of the CPPCC National Committee Hu Deping, Professor Zhu Lizhe of the National School of Administration, Zhou Tianyong, Vice President of the Central Party School's Institute of International Strategy, and Minsheng Securities Co., Ltd. Dean Guan Qingyou made speeches on topics such as the green development and the sharing economy, the interpretation of the 19th National Congress, the macro-economic situation in 2018, and the economic outlook for the new era.

The Annual Meeting of China's Environmental Protection Listed Companies is an annual event for the environmental protection industry, attracting over a thousand leading enterprises including the National Development and Reform Commission, the Ministry of Environmental Protection, the Ministry of Industry and Information Technology, the Guangdong Provincial Government and other government departments, investment circles and IT circles, as well as leading enterprises around Zhaoqing Delegates' attention. At the same time, it also provides a platform for the exchange of experience for the big coffee industry and opinion leaders in the environmental protection industry. Forums are new in form and rich in content. Summit topics include: Green Development and the New Era Environmental Protection Industry and New Industrial Civilization: Green Production + Third-Party Governance, Industrial Freshman: Artificial Intelligence + Intelligent Environment Protection, Healthy Development VS Rapid Development.

Source: Polaris Power Network

 

2. Jun Ma participates in the Paris climate finance conference to introduce the development of China's green finance

On December 11, 2017, at the "One Earth Summit" in Paris, the French Ministry of Finance and the European Association of Financial Markets in Paris hosted the "Climate Financing Day 2017" and more than 400 participants from dozens of countries and international organizations Representatives attended the meeting. Ma Jun, Special Advisor to the President of the People's Bank of China and Director of the Green Finance Committee of the Finance Committee of the Chinese People's Liberation Army made a keynote speech and introduced the recent progress made by China in developing green finance and promoting the formation of an international consensus on green finance. Work hard.

Ma Jun said that with the vigorous promotion by the Chinese government, China has made rapid progress in many green finance sectors. In 2017, China's green bond market became the largest green bond market in the world. So far, about 50 green funds have been launched or participated in by the local governments in China, and more than 200 green funds have been launched by social capital. China started green finance pilot projects in five provinces and eight cities in China. Most of the pilot areas have launched specific programs and effective measures. Financial institutions and third-party agencies have promoted a host of innovative green financial products and analytical tools, including green ABS, green building insurance, green new energy insurance, green indices and products, environmental stress testing methods, and green rating methods. The regulatory authorities have proposed a specific timetable for setting up a compulsory environmental information disclosure system covering all listed companies. Greenpeace is organizing pilot projects for China's financial institutions to carry out environmental information disclosure. Greenpeace will also set up a green project library to provide an information platform for China's green projects and the docking of domestic and foreign financial resources.

Ma Jun pointed out that although China, France and many countries have made positive progress in green finance, the proportion of green finance in the entire financial system is still very low. From an international perspective, green finance still faces such problems and challenges as weak incentive mechanism, lack of standards, limited implementation capacity and inadequate product tools. Jun Ma said that the G20 should continue to promote green and sustainable finance. Central banks and financial regulators in various countries should strengthen exchanges and cooperation and further explore their positive role they can play in promoting green finance and coping with climate change.

Source: China Energy Network

 

3. International Energy Agency: China's energy mix will gradually shift to clean power generation

On December 12, 2017, the IEA World Energy Outlook 2017 China Special Report was released in Kunming on the 12th. The report argues that China's energy mix will gradually shift to clean power generation. China's growing energy demand is increasingly relying on renewable energy, natural gas and electricity, while coal demand has declined.

This is the reporter learned from the World Energy Outlook 2017 China Special Report's Global Conference cum Yunnan Green Energy Sustainable Development Seminar held in Kunming on the 12th.

The report states that China's energy demand is more dependent on renewable energy, natural gas and electricity and that coal demand will drop somewhat in the near future. It is estimated that by 2040, the share of coal in total power generation will drop from two-thirds in 2016 to below 40%, and power will dominate in China's terminal energy consumption.

The report argues that China's energy structure will gradually shift to clean power. Strong deployment and strong policies continue to reduce the cost of renewable energy. Solar PV will be the most economical way of generating electricity in China. Low-level projects led by hydropower, wind power and solar photovoltaic power will grow rapidly, accounting for 60% of total installed capacity by 2040.

The report predicts that by 2040, the share of coal in China's primary energy structure will be reduced to about 45%, the demand for natural gas in China will increase to more than 600 billion cubic meters, and the share of natural gas in China's major energy structure will go from 6% to 12% or more.

Source: Xinhua

 

4. The "One Earth" Summit Held in Paris Calling for climate warfare

On December 13, 2017, on the second anniversary of the signing of the Paris Climate Agreement, the "One Earth" summit was held in Paris, France on December 12, local time, and the heads of state and government of 50 countries attended the meeting. French President Mark Long warned at the meeting: "We are losing this battle to curb the warming of the climate." He called for action on disposable mineral energy.

According to the French media, French president Macron said the following at the meeting: "The emergency has become a long-term business, the challenge of our generation is to move faster to win the battle against fate and take concrete actions to change our country, our society, and our economy. "

The essence of the Paris climate deal is to keep the temperature rise at a below the critical 2 degrees. In line with the commitments made by all countries, the world has been working toward a 3-degree increase from the earlier era of industrialization. But reducing greenhouse gas emissions and meeting the targets set in the Paris agreement will require major changes and heavy investments.

In response to the call for the gradual abandonment of mineral energy, the World Bank announced that it will stop providing financial support for oil and gas exploration and production activities starting from 2019, except for "special cases". Hoping to align its business of providing loans with the goals set by the Paris agreement.

Source: World Wide Web

                        

5. The 6th International Clean Energy Forum was held in Macao

On December 13, 2017, the 6th International Clean Energy Forum was held in Macao. More than 200 government officials, experts, scholars and industrialists from home and abroad gathered around the topics of nuclear energy, hydrogen energy and clean energy policy, technology and market innovation Speak, discuss and exchange.

The theme of the forum was "Nuclear Energy, Hydrogen Energy and Multilateralism, One Belt and One Road" to respond to the initiative of the government to build a green "Belt and Road" and bring into play the special advantages of Macao, Hong Kong, Guangdong, Taiwan and Guangdong regions in promoting the sustainable development of nuclear hydrogen energy and promote international cooperation in such fields as energy conservation, clean energy, environmental protection, green transportation and construction. He Hua, vice chairman of the CPPCC National Committee attended the opening ceremony.

The Forum will also release the Blue Book on Clean Energy - 2017 Global Blue Book for Nuclear Industry and the Blue Book on Clean Energy - 2017 Blue Book for International Hydrogen Industry. The rest of the agenda also includes thematic summits, 2017 International Nuclear Energy Industry Development Summit, 2017 International Hydrogen Energy Industry Development Summit and other activities.

Source: People's Network