ESG Today writes: "China Releases New Green Finance Taxonomy"

https://www.esgtoday.com/china-releases-new-green-finance-taxonomy/

ESG Today writes: "China Releases New Green Finance Taxonomy".

In summary: China’s financial regulators—including the People’s Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission—have introduced the Green Finance Endorsed Project Catalogue, set to streamline and unify standards for green financial products such as bonds and loans (excluding equities). It consolidates previously fragmented taxonomies into a single framework, aiming to enhance market liquidity, boost efficiency in managing green financial assets, and lower the cost of identifying eligible projects. The new catalogue will come into effect on 1 October 2025. It also broadens the scope of eligible activities to include energy conservation, carbon reduction, environmental protection, resource recycling, low-carbon energy transition, ecological restoration, green infrastructure upgrades, and green services, trade, and consumption. Notably, the updated taxonomy introduces new categories like “green trade” and “green consumption”, as well as a secondary category for “green and low‑carbon transition of key industrial sectors”, allowing funding to support decarbonisation in hard‑to‑abate industries. While it partially aligns with international guidelines, it diverges in certain eligibility thresholds and methodologies. Experts believe this could help direct capital toward industrial decarbonisation and bolster China’s role in global green tech supply chains.