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Can Green Bonds Help Air Pollution Mitigation in China? Potential and Challenges

Su, Meiling LU (2015) In IIIEE Master thesis IMEN56 20141
The International Institute for Industrial Environmental Economics
Abstract
This paper aims to examine the potential of green bond implementation in China suited with
Chinese air pollution situation. It researched the green bond origination, history, definination
and categories and so on. The paper applied literature review, case study and internview
methods to purpue a conclusion.
Since the financial crisis, many countries are exploring how to re-engineer the financial system
integrating sustainability, social responsibility and environmental factors. Green bonds are one
of the forms of investment with an environmental focus. China is a country with both large
amounts of financial capital and severe environmental issues. Pursuing economic development
in a sustainable manner is a crucial topic for emerging... (More)
This paper aims to examine the potential of green bond implementation in China suited with
Chinese air pollution situation. It researched the green bond origination, history, definination
and categories and so on. The paper applied literature review, case study and internview
methods to purpue a conclusion.
Since the financial crisis, many countries are exploring how to re-engineer the financial system
integrating sustainability, social responsibility and environmental factors. Green bonds are one
of the forms of investment with an environmental focus. China is a country with both large
amounts of financial capital and severe environmental issues. Pursuing economic development
in a sustainable manner is a crucial topic for emerging market economies, such as China. One
of the most vicious environmental issues that cause direct damage to human health is the air
pollution problem, which has worsened in recent years.
This paper focuses on the outdoor air pollution in China, which has significant adverse impact
on residents’ health and the country’s overall economic development. The main source of
outdoor air pollution in China is industrial coal burning. And to reduce the industrial coal
burning, there are three main solutions: increase renewable energy use, improve energy
efficiency and enhance clean production. Cases from the World Bank and IFC on green bond
issuance and their proceed use show evidential facts that green bonds could help air pollution
mitigation by providing financial resources for energy efficiency, for the energy conservation
sector and for leveraging more capital flow into the environmental area.
Green bond implementation in China could potentially contribute two positives: on the one
hand, green bonds could help solve the financial resource shortage for mitigating the air
pollution problem; on the other hand, they can add to the environmental finance products’
diversities. This paper explores the potential and the challenges of green bond issuance in
China based on a key question: can green bonds help air pollution mitigation? By studying the
green bond product (concept, feature, proceed use) and bond market, and analyzing the
financial need for air pollution mitigation in China, we can conclude a positive answer to the
question proposed. (Less)
Please use this url to cite or link to this publication:
author
Su, Meiling LU
supervisor
organization
course
IMEN56 20141
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Policy reforms, Mitigation, Sustainable finance, Air pollution, Green bond
publication/series
IIIEE Master thesis
report number
2015: 2
language
English
id
7861078
date added to LUP
2015-09-08 09:24:09
date last changed
2015-09-08 09:24:09
@misc{7861078,
  abstract     = {This paper aims to examine the potential of green bond implementation in China suited with
Chinese air pollution situation. It researched the green bond origination, history, definination
and categories and so on. The paper applied literature review, case study and internview
methods to purpue a conclusion.
Since the financial crisis, many countries are exploring how to re-engineer the financial system
integrating sustainability, social responsibility and environmental factors. Green bonds are one
of the forms of investment with an environmental focus. China is a country with both large
amounts of financial capital and severe environmental issues. Pursuing economic development
in a sustainable manner is a crucial topic for emerging market economies, such as China. One
of the most vicious environmental issues that cause direct damage to human health is the air
pollution problem, which has worsened in recent years.
This paper focuses on the outdoor air pollution in China, which has significant adverse impact
on residents’ health and the country’s overall economic development. The main source of
outdoor air pollution in China is industrial coal burning. And to reduce the industrial coal
burning, there are three main solutions: increase renewable energy use, improve energy
efficiency and enhance clean production. Cases from the World Bank and IFC on green bond
issuance and their proceed use show evidential facts that green bonds could help air pollution
mitigation by providing financial resources for energy efficiency, for the energy conservation
sector and for leveraging more capital flow into the environmental area.
Green bond implementation in China could potentially contribute two positives: on the one
hand, green bonds could help solve the financial resource shortage for mitigating the air
pollution problem; on the other hand, they can add to the environmental finance products’
diversities. This paper explores the potential and the challenges of green bond issuance in
China based on a key question: can green bonds help air pollution mitigation? By studying the
green bond product (concept, feature, proceed use) and bond market, and analyzing the
financial need for air pollution mitigation in China, we can conclude a positive answer to the
question proposed.},
  author       = {Su, Meiling},
  keyword      = {Policy reforms,Mitigation,Sustainable finance,Air pollution,Green bond},
  language     = {eng},
  note         = {Student Paper},
  series       = {IIIEE Master thesis},
  title        = {Can Green Bonds Help Air Pollution Mitigation in China? Potential and Challenges},
  year         = {2015},
}