China has agreed to issue an inaugural RMB-denominated sovereign green bond in 2025, listed in London – the first in a programme of Chinese green sovereign issuances in the UK.
The two sides also affirmed the London Branch of the Bank of China’s intention to issue new dual currency sustainability-related bonds in 2025, to be denominated in RMB and GBP and listed in London.
The news comes as part of a wide-ranging economic and financial dialogue between the two countries, during which the two nations reiterated their recognition of each other as primary partners in green finance, for capital raising, product innovation and international thought leadership.
In a statement, the UK government said both sides “recognise the important role that sustainable government financing can play” in combatting climate change and tackling environmental challenges. The two states agreed to continue to collaborate and share knowledge regarding sovereign green financing frameworks.
Both sides also welcomed the progress made by the UK-China Green Finance Taskforce, delivered by the City of London Corporation and China’s Green Finance Committee, and committed to welcoming an enhanced industry Leadership Council to advise the Taskforce on advancing its future agenda. This is set to include collaboration on sustainability disclosures and establishing new workstreams on transition finance and biodiversity finance.
