BEIJING: China needs 2 trillion yuan (US$315 billion) of “green” investment annually in environment and energy-saving sectors in the next five years and private funds in these areas will be encouraged, financial experts said yesterday.
Ma Jun, chief economist of the People’s Bank of China, said there will be rules to nurture the market for green bonds and stocks.
The rules will include defining “green” assets, requiring companies to disclose environment-related information, and offering discounted rates and guarantee to lower funding costs for the green companies, Ma said at the Bloomberg New Energy Finance Forum.
“Fiscal spending could cover only about 250 billion yuan spending each year to support green investment, and a large part of the remaining funds should come from private sectors,” Ma said.
Ma is leading a Green Finance Committee that will draw a blueprint to develop the market.
He added that a more transparent market is essential to attract investment.
Wang Yao, deputy secretary-general of the committee, said a catalog of green bonds is nearly completed to offer investors a clear idea of the standards needed and there will be rules to ensure the funds collected are properly used and projects properly arranged.
Companies and banks can issue green bonds to meet their demand for long-term funds at lower costs, Wang added.
