Green Municipal Bonds

JUCCCE is pioneering the adoption of Green Municipal Bonds in China to finance the greening of China's cities. A large-scale and rapid shift to a low-carbon economy will depend on the mobilization of private capital through low risk financial products such as Green Bonds.  The capacity of government to directly fund green projects (energy efficiency retrofits for industry, waste and water treatment facilities, mass transport, and renewables) from taxation and land sales is limited.

"Green Bonds" is one innovative approach to funding sustainable infrastructure initiatives in our cities at the scale and speed necessary, while providing institutional investors with security of returns over the longer term.

After introducing the first 4 pilots for municipal bonds in November 2011, China is now uniquely poised to open up a trillion-plus dollar market in green municipal bonds to finance the greening of China. But China still needs to undergo many changes to create a municipal bonds market equivalent to the US market.