Financial Sustainability Regulators

The New Green Finance Taxonomy marks a pivotal update in China’s sustainable finance landscape. Released by the People’s Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission, the new 'Green Finance Endorsed Project Catalogue' creates a unified classification system for green financial products, set to take effect on October 1, 2025.

This taxonomy standardizes eligibility criteria for projects financed by green bonds and loans -- excluding equities -- for improved liquidity, lower identification costs, and more efficient asset management. Expanded categories now include not only traditional sustainability areas like energy conservation and environmental protection but also 'green trade,' 'green consumption,' and 'low-carbon transitions' in hard-to-abate industries.

According to Sustainable Fitch, the framework’s broader scope may redirect capital into industrial decarbonization and local green tech manufacturing -- key to China’s global supply chain strategy. While partially aligned with global norms, the taxonomy adopts uniquely localized definitions for green-enabling activities.