Drivers for Greenness of Green Bonds: An Assessment of the Green Bond Governance in China
(2018) In IIIEE Master Thesis IMEN41 20181The International Institute for Industrial Environmental Economics
- Abstract
- Green bonds are facing prosperity in international and China’s bond market, and becoming increasingly important in the overarching aim of financing green projects to reduce environmental impacts. Therefore, the green degree is an important topic.
Based on literature review and interviews, this study defined five key stakeholders in green bond market in China. The regulators are the primary driving force for greenness promotion, while bond issuers are directly related to the implemented green level. Investors can use their investment preference to influence the green degree; auditors play a role in the maintenance and monitoring of green degree; and regional authorities are the direct incentive providers.
Central government provided a... (More) - Green bonds are facing prosperity in international and China’s bond market, and becoming increasingly important in the overarching aim of financing green projects to reduce environmental impacts. Therefore, the green degree is an important topic.
Based on literature review and interviews, this study defined five key stakeholders in green bond market in China. The regulators are the primary driving force for greenness promotion, while bond issuers are directly related to the implemented green level. Investors can use their investment preference to influence the green degree; auditors play a role in the maintenance and monitoring of green degree; and regional authorities are the direct incentive providers.
Central government provided a clear motivation to promote the green bond market; various incentives from regional authorities were offered to make it more convenient and practical to issue green bonds, however, the incentives were not dependent on the green degree; different agencies set - inconsistent and non-mandatory - requirements for information disclosure, and the implementation did not meet its goal under an incomplete requirement system; the supervision system for green bonds is immature without complete regulation system and auditing market, no specific requirements nor regulations have been set for the qualification of auditors.
This study provided a first review of China’s green bond governance system to explore green degree embedded in its governance system. Future researchers may explore the real environmental performance of green bond projects, or potential improvement from the perspectives of bond issuers and investors to draw a full picture of this system. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8960249
- author
- Liu, Qintong LU
- supervisor
-
- Håkan Rodhe LU
- organization
- course
- IMEN41 20181
- year
- 2018
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- green bonds in China, designed green degree, policy review
- publication/series
- IIIEE Master Thesis
- report number
- 2018:22
- ISSN
- 1401-9191
- language
- English
- id
- 8960249
- date added to LUP
- 2018-10-15 17:25:23
- date last changed
- 2018-10-15 17:36:54
@misc{8960249,
abstract = {{Green bonds are facing prosperity in international and China’s bond market, and becoming increasingly important in the overarching aim of financing green projects to reduce environmental impacts. Therefore, the green degree is an important topic.
Based on literature review and interviews, this study defined five key stakeholders in green bond market in China. The regulators are the primary driving force for greenness promotion, while bond issuers are directly related to the implemented green level. Investors can use their investment preference to influence the green degree; auditors play a role in the maintenance and monitoring of green degree; and regional authorities are the direct incentive providers.
Central government provided a clear motivation to promote the green bond market; various incentives from regional authorities were offered to make it more convenient and practical to issue green bonds, however, the incentives were not dependent on the green degree; different agencies set - inconsistent and non-mandatory - requirements for information disclosure, and the implementation did not meet its goal under an incomplete requirement system; the supervision system for green bonds is immature without complete regulation system and auditing market, no specific requirements nor regulations have been set for the qualification of auditors.
This study provided a first review of China’s green bond governance system to explore green degree embedded in its governance system. Future researchers may explore the real environmental performance of green bond projects, or potential improvement from the perspectives of bond issuers and investors to draw a full picture of this system.}},
author = {{Liu, Qintong}},
issn = {{1401-9191}},
language = {{eng}},
note = {{Student Paper}},
series = {{IIIEE Master Thesis}},
title = {{Drivers for Greenness of Green Bonds: An Assessment of the Green Bond Governance in China}},
year = {{2018}},
}