China is increasingly becoming the leader of global green bonds.

Green finance means that financial institutions take full account of their potential environmental impacts in their investment and financing decisions, incorporate the potential returns, risks and costs related to environment and climate change into their daily operations, guide the flow of financial resources to the development of resource-saving technologies and the protection of the ecological environment, so as to make enterprises operate more effectively. Focusing on environmental impacts, consumers gradually form the concept of green consumption.

As environmental protection and climate change issues have attracted worldwide attention, green finance, as a new type of financing, is rapidly rising worldwide. Green bond market, as the main component of global green finance, has also achieved rapid development in recent years. Global green bond issuance hit a quarterly high of $20.3 billion in the second quarter, well above $16.9 billion in the first quarter, and totaled $37.2 billion in the first six months of this year, up 89% from $19.7 billion in the same period in 2015, according to statistics released by Moody's on July 26. As of June 2016, the issuance of global green bonds has reached US $119 billion 900 million. Moody's predicts that global green bond market issuance is expected to reach an all-time high of $75 billion in 2016.

China has become the largest green bond market in the world.

In my opinion, the rise of global green finance benefits from the rapid development of China's green credit, green bonds and green asset securitization. China is increasingly becoming a leader in global green finance. Specifically, it is mainly manifested in the following three aspects:

First, the transformation of the Chinese government's development philosophy and policy support and guidance. With the deepening of our understanding of ecological civilization, "green development" has become one of the five development concepts. "Thirteenth Five-Year Plan" outline clearly "to establish a green financial system", the development of green credit, green bonds, the establishment of green development funds. At the beginning of this year, the State Development and Reform Commission issued the Guidelines for the Issuance of Green Bonds in order to further promote green development, promote the optimization of economic restructuring and accelerate the transformation of development methods. In the 3~4 month of this year, the Shanghai Stock Exchange and Shenzhen Stock Exchange issued a pilot scheme on green corporate bonds. At present, China is one of the three countries in the world that have set up the "green credit index system". It is the first country in the world to issue its own green bond definition standards by government support agencies. Local governments, including Inner Mongolia, Yunnan, Hebei and Hubei, have set up green development funds or environmental protection funds to promote green gold. The development of Finance and the construction of green investment and financing system. These changes in development concept, policy support and guidance have become an important driving force for China's green financial development.　　

Secondly, domestic and foreign financial institutions and enterprises take an active part in it. The demand for green finance is huge, and Chinese financial institutions and enterprises have already foresight. Since the first green bond issued by CNPC on May 12, 2014, nearly 30 green bonds have been issued in China. On July 5, 2016, the Luxembourg Branch of the Bank of China and the New York Branch simultaneously issued the first green bond of the Bank of China, with an equivalent size of US$3.03 billion, covering three currencies of US dollar, Euro, Renminbi and three maturities of 2, 3 and 5 years. This is the largest single issue and the largest variety of green bonds ever issued on the global market. Bonds are highly sought after by global investors, with a total subscription rate of more than 3 times. On July 18, 2016, BRICS successfully issued RMB 3 billion five-year green financial bonds with an interest rate of 3.07%. This was the return of international multilateral financial institutions to China's bond market after seven years. The successful issuance further promoted the internationalization of RMB and the opening up of the RMB bond market. On July 20, 2016, the exhibition became the first domestic non-financial enterprise to issue green bonds in Hong Kong. The issuance scale was $500 million over a 10-year period and the coupon rate was only 2.875%. It was one of the lowest interest rates ever obtained by Hong Kong enterprises, with subscription multiples exceeding four times. Therefore, the development of China's green bond market is not limited to domestic financial institutions and enterprises issuing in the domestic market, but extends to Chinese financial institutions and enterprises issuing foreign currency green bonds in overseas markets, and international multilateral financial institutions issuing RMB green bonds in China.

Finally, the development of green finance and green bond market has achieved remarkable results. According to the estimation of the People's Bank of China, during the 13th Five-Year Plan period, China's green economy needs to invest about 3% of GDP annually, with an annual average of over 2 trillion yuan. In the total green investment, the proportion of government investment is about 10%-15%, and the proportion of social capital will be 85%-90%. Such a large-scale demand for funds will inevitably require the participation of the financial system, and the 13th Five-Year Plan will reach 8.5 trillion to 9 trillion yuan through green financial financing. In fact, with the strong support of the Chinese government and the active participation of Chinese enterprises, China's green credit has developed rapidly. According to Zhou Xiaochuan, the central bank governor, about 10% of China's current loan balance is classified as green loans, close to 10 trillion yuan. By the end of June 2016, China had become the world's largest green bond market, with nearly 120 billion yuan of green bonds issued in China, accounting for 45% of global green bonds issued in the same period. In addition, it is worth mentioning that as early as June 2006, Shenzhen Stock Exchange launched two phases of "Nanjing Urban Sewage Treatment Fee Benefit Right Special Asset Management Plan" of green assets securitization products, raising a total of 2.051 billion yuan. Since 2015, a total of six green asset securitization products have been successfully issued in the exchange market, and China's green financial products have been in the forefront of the world.

With green finance, the world economy has achieved a strong driving force for sustainable green development. At present, China has begun to walk in the forefront of global green finance in terms of policy support, financial institutions and enterprise participation, or green financial product diversification.