Transforming finance for sustainability in energy: past, present and future of green bonds in China

Abstract

Abstract A coherent and robust framework for energy regulation at both national and international levels behaves as a vital cog in creating efficient energy mechanisms. This article explains that in a key country like China, green bonds are called to play an important role to serve the policy mandate for clean energy. The ubiquitous presence of green bonds has concerted the development of their principal prerogatives in the form of ‘Green Bond Principles’. As a consequence, China has been a dominant force in the market of green bonds. However, the article shows that this dominance is accompanied with functional loopholes, prominently characterized by the lack of diversity in the market.