中英转型金融与绿色经济合作的机遇

UK-ChinaCollaboration

onTransitionFinance

andtheGreenEconomy

June2026

Acknowledgements

ThereportwasdevelopedaspartoftheTransitionFinanceWorkstreamoftheUKChinaGreenFinanceTaskforce,co-chairedbyDr.MaJun,Presidentofthe

InstituteofFinanceandSustainabilityinBeijing,andAldermanSirCharles

BowmanoftheCityofLondonCorporation.TheTransitionFinanceWorkstreamisco-ledbyHSBCandBankofCommunications.

TheresearchwasledbyJaakkoKooroshy,FelixFouret,KieranBrophy,andMobiShemfeattheLondonStockExchangeGroup(LSEG),withkeycontributions

fromLijianZhao,JeanieYangandMingyueTangfromtheInstituteforFinance

andSustainability(IFS),ShanningDong,XiaLiu,andQingHuofromBank

ofJiangsuandTimLordandCarolineBourneatHSBC.AndrewHowardfrom

Schroders,EwanEvans,JennyHao,MarkHedleyandShudanGuifromtheCity

ofLondonCorporationandDavidHarris,JulienMoussavi,TingtingLiuandClaireDorrianatLSEGalsoprovidedvaluablecommentsandreviewsonearlierdraftsofthispaper.

Contactinformation:

FelixFouret:

Felix.Fouret@

Jaakko

Kooroshy:Jaakko.Kooroshy@

ZHAOLijian:

zhaolj@

YANGJia:yangjia@

Disclaimer

•Thisdocumentisprovidedforinformationanddiscussionpurposesonlyanddoesnotconstitutelegal,regulatory,financialorinvestmentadvice.

•Itisbasedonpubliclyavailableinformation,third-partydata(includingLSEGdata)andinternalanalysis,whichmaybe

subjecttolimitations,updatesorrevision.Norepresentationorwarrantyisgivenastotheaccuracy,completenessorsuit-abilityofsuchinformation.

•Anyforward-lookingstatements,projectionsorscenarios(includingclimatepathways,marketdevelopmentsorpolicyoutcomes)areinherentlyuncertainandmaynotmaterialiseasdescribed.

•ReferencestoChina-basedinstitutions,marketsorregulatoryframeworksareprovidedinageneralcontextandaresubjecttoapplicablelocallawsandregulatoryrequirements.

•Theviewsexpresseddonotnecessarilyreflectthoseofanyspecificinstitutionandshouldnotberelieduponfordeci-sion-making.Totheextentpermittedbylaw,noliabilityisacceptedforanyuseoforrelianceonthisdocument.

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1.Executivesummary

TheUKandChinaarecentraltotheglobaltransitiontoalow-carboneconomy.Bothcountrieshaverecentlysignalledincreasednationalclimateambition

throughnew2035NationallyDeterminedContributions(NDCs),signallingacceleratingdecarbonisationfromdifferentstartingpoints.

Atthesametime,corporatesinbothjurisdictionsareincreasinglyengaging

intransitionplanning,supportedbyrapidlyevolvingclimatedisclosureand

policyframeworks.Chinaispilotingalandmarkclimatedisclosurestandard

thatalignscorporatetargetsandstrategieswithnationalobjectives;whiletheUKgovernmenthaspublishedthefinalversionoftheSustainabilityReportingStandards(UKSRS)forvoluntaryuseandtheFCAiscurrentlyconsultingon

potentialintegrationtolistingrules.

TheUK–ChinaGreenFinanceTaskforce(GFT)isabilateralplat_formforgreenfinancecollaboration,providinganimportant

forumformemberstoexchangeideasandidentifypractical

areasforcooperation;thisreportisamember_ledcontributionproducedwithintheTransitionFinanceWorkstreamoftheGFT.

AspartoftheactivitiesoftheUK-ChinaGFTTransitionFinanceWorkstream,thispaperreviewsthelatestdevelopmentsingovernmentalandcorporatetransitionplanninginChinaandtheUK,exploresgreenandtransitionfinancepractices

andinstitutionsinbothcountries,andidentifiesopportunitiesforenhancedcollaboration.

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TheanalysisshowsthatwhiletheUKandChinahaveadopteddistinct

approaches,therearecomplementarystrengthsandopportunitiesforsyner-giesinscalinggreenandtransitionfinanceandbroadeninganddeepening

corporatetransitionplanning–providingastrongbasisforenhancedbilateralcooperation.

AsChinapilotsitsnewcorporatedisclosurestandards,theanalysisidentifiesopportunitiesfortheUKandChinatoshareexperienceondisclosureexpecta-tionsandtransitionplanning,supportinggreaterconsistencyacrosstransitionfinanceframeworksandmarketpractices.Moregranularclimatedisclosures

andtransitionplanscould,inparticular,supporttheintroductionofinnovativeapproachesinequitymarkets–suchastransitionindexes–whichsofarhavereceivedlessattentioninChina.

Thepaperhighlightsclearopportunitiesforenhancedbilateralcollaboration,

includingmutualrecognitionofkeytransitionfinanceframeworks,improved

dataandassessmentcapabilities,expandedcapital-marketsolutions,and

jointeffortstomobilisefinanceforhard-to-abatesectorsandthird-country

transitions.Strengtheningcooperationintheseareascanhelptranslateambi-tionintoinvestment,reducefragmentation,andsupportanorderly,large-scaletransitioninbotheconomies.

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2.New2035targetssetthetoneforthetransitioninChinaandtheUK

Figure1.Emissionstrajectories(inMtCO2e)impliedbyannouncedNDCsfortheUKandChina.

Source:LSEGdata,2026.

UndertheParisAgreement,theUKandChinacommittedtoanew‘thirdgener-ation’ofclimatetargetsin2025.TheseNDCs3.0–thenextroundofnational

climatecommitmentssubmittedtotheUnitedNationsFrameworkConventiononClimateChange(UNFCCC)–setouteachcountry’sreviseddecarbonisation

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pathwayto2035.Bothsignalacceleratingdecarbonisationefforts,butfromverydifferentstartingpoints.

Chinahas,forthefirsttime,statedinitsNDCan

intentiontomovetowardeconomy-wide,absoluteGHGemissionreductions.

InitsNDC3.0,Beijinghaspledgedtocutits2035emissionsby7-10%below

peaklevelsandrecommittedtopeakingemissionsbefore2030,alongsideits2060carbon-neutralitytarget.Thenew2035targetcanbeseenasafloor,asitcontainsexplicitlanguagethatChinawillbe“strivingtodobetter”.

1

Chinahasalsopledged,by2035,toreachover30%non-fossilenergyintotalconsump-tionandtoincreasewindandsolarcapacitysixfoldcomparedto2020levels.

ThesetargetsaresupportedbyChinaestablishingitselfasaleadingglobal

manufactureranddeployeroflowcarbontechnologies–accountingforover60%ofglobalrenewableenergyadditionsin2025,andover70%ofglobal

electricvehicleproductionin2024–aswellasbytheexpansionofitsnationalEmissionsTradingScheme(ETS)beyondpowertocoversteel,cementand

aluminium.Thisbringscoveragetoaround60%ofnationalemissions.

2

,

3

Box:Sub‑nationaltransitionplanninginChina

Toachieveitstargets,Chinahasbeendevelopinganinnovativeapproachto

transitionfinance,combiningnationalguidancewithextensivelocalexperi-

mentation.Atthenationallevel,thePeople’sBankofChina(PBoC)isleadingeffortstodefinesector-specifictransitionfinancestandardsforhigh-emittingindustriessuchassteel,coal-firedpower,buildingmaterialsandagriculture.Thesearecomplementedbylocallytailoredtaxonomiesintroducedbyprovin-cialandmunicipalgovernments,reflectingregionalindustrialstructuresandemissionsprofiles.

Forexample,Jiangsuprovincehassupportedthedevelopmentoftransition

financesystemsthatintegrateESG-basedassessmenttools,digitalplatformsandarangeoffinancialinstruments,includingmechanismstoguidecreditscreeningandlendingdecisions.

4

Similarly,Hebei–China’slargeststeel-producingprov-

ince–hasdevelopedtargetedstandardstosupportlow-carbonupgradesinthesteelsector,whichaloneaccountsforaround15%ofnationalemissions.

5

1UNFCCC,China’s2035NationalDeterminedContributions,2025[

UNFCCC

]

2IEA,GlobalEnergyReview2026,2026[

IEA

]

3IEA,GlobalEVOutlook2025,2025[

IEA

]

4UnitedNationsEnvironmentProgramme,JustTransitionFinance:CaseStudiesfromBankingandInsurance(BankofJiangsu,ScalingInclusiveGreenFinancethroughDigitalInnovation),2026[

UNEP

]

5ClimateBondsInitiative,AGreenSteelDecadeforChina,2025[

HMGovernment

]

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Duringthe15thFive-YearPlan,Chinaaimstodeveloparound100zero-carbonindustrialparks,whilealsoincorporatingprogressoncarbonpeakingand

neutralityintolocalgovernmentperformanceassessments.Bytheendof2025,morethantenprovincesandcitieshadissuedover20localtransitionfinance

taxonomiescoveringawiderangeofcarbon-intensivesectors,includingsteel,coalpower,chemicalsandtransport.Together,thiscombinationofnational

standards,localinnovationandintegrationintoplanningframeworksenablesfinancialinstitutionstodirectlysupportdecarbonisationacrossdiversesectors.

TheUK’s2035and2040GHGemissionstargetsrepre-sentsignificantambition.

IntheUK,carbonemissionshavedeclinedsincetheirpeakinthe1970sand

arenowmorethan50%below1990levels.TheUK’stargets–an81%reductionby2035andarecentlyannounced87%cutby2040–deepenanalreadysteeptrajectoryandrankamongthemostambitiousdecarbonisationtargetsinthe

world.

6

,

7

ThelastcoalfiredpowerstationintheUKclosedin2024,andundergovern-

mentplanslowcarbonsourceswillaccountfor95%ofpowergenerationby

2030,withafullydecarbonisedgridtargetedby2035.

8

,

9

Inparallel,theUKaimstophaseoutpetrolanddieselcarsalesby2030andhybridsby2035.

10

TheUKEmissionsTradingSystem(UKETS)isexpandingbeyondtheheavy

industry,powerandaviationsectorstoincludethemaritimeandwastesectorsfrom2026and2028respectively.

11

Thisisalongsidetightercaps,decliningfreeallowancesandanextensionoftheschemeto2040.

AccordingtotheConfederationofBritishIndustry(CBI),greensectorsare

growingmorethanthreetimesfasterthanthewiderUKeconomyandin2025generated£105billioningrossvalueadded(GVA)andoveronemillionjobs.

12

6HMGovernment,UK's2035NationallyDeterminedContribution(NDC)emissionsreductiontargetundertheParisAgreement,2025[

HMGov-

ernment

]

7HMGovernment,Energysecurity,jobsandinvestmentboostthroughclimateaction,2026[

HMGovernment

]

8HMGovernment,CleanPower2030ActionPlan:Aneweraofcleanelectricity,2024[

HMGovernment

]

9HMGovernment,NetZeroStrategy:BuildBackGreener,2021[

HMGovernment

]

10HMGovernment,BackingBritishbusiness:PrimeMinisterunveilsplantosupportcarmakers,2025[

HMGovernment

]

11HMGovernment,EmissionsTradingScheme(UKETS):policyoverview,2025[

HMGovernment

]

12HMGovernment,Energysecurity,jobsandinvestmentboostthroughclimateaction,2026[

HMGovernment

]

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Despiteglobaldecarbonisationefforts,risingphysicalclimateriskisincreasingthefocusonadaptationandresilience.

BoththeUKandChinaareforecasttofacerisingphysicalriskduetoclimate

change.AnalysisbyLSEGsuggeststhatintheUK,8.3millionpeopleandnearly10%ofGDPcouldbeathighfloodriskby2050.13,14InChina,coastalmegacitiesareprojectedtobehighlyexposedtomultiplehazards,suchasShanghai

(cyclonesandheatwaves),Guangzhou(flooding),Tianjin(flooding),HongKong(heatwaves).9

BoththeUKandChinahavepublishedNationalAdaptationPlans(NAPs),

supportedbynationalclimateriskassessmentsandmonitoringandevalua-

tionframeworksfortrackingadaptationprogress.TheUK’smostrecentNAP

(NAP3),setsoutsector-specificactionsacrosskeyareassuchasinfrastructure,thenaturalenvironment,andbusinessandindustry.15China’sNationalClimateChangeAdaptationStrategy2035emphasiseslong-termresilience,disaster

riskmanagement,andintegrationintobroadereconomicdevelopmentplan-ning,suchastheFive-YearPlans.16

13UnderahighwarmingSSP5-8.5scenario.

14LSEG,COP30NetZeroAtlas,2025[

LSEG

]

15HMGovernment,TheThirdNationalAdaptationProgramme(NAP3)andtheFourthStrategyforClimateAdaptationReporting,2023[

HM

Government

]

16GovernmentofthePeople’sRepublicofChina,NationalClimateChangeAdaptationStrategy2035,2022[

GovernmentofthePeople’sRe-

publicofChina

].Englishtranslationavailable

here

.

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3.Corporateclimatedisclosuresand

transitionplanninginChinaandtheUK

Liketheirnationalgovernments,corporatesinChinaandtheUKarealso

engaginginincreasinglysophisticatedtransitionplanning.TheUKisagloballeaderinthisarea,andhasanestablishedclimatedisclosureandtransition

planningframework,reflectingoveradecadeofregulatorydevelopmentsinceemissionsreportingbecamemandatoryin2013andtheearlyadoptionof

TCFD-aligneddisclosures.

17

China,whileatanearlierstage,ismakingrapidprogressinrecentyearsandhasplanstoestablishingaunifiednational

sustainabilitydisclosureframeworkby2030.

UKcorporatesareamongtheleadersgloballyin

climatedisclosuresandtransitionplanninginthe

world.

18

BasedonLSEGdata,almostalllistedcompaniesnowreporttheirScope1and2emissions(around98%ofFTSE100companiesandapproximately88%ofFTSEAll-Sharecompanies).

Emissionsreductiontargetsaresimilarlycommon,with96%ofFTSE100firmsandmorethanthreequartersofUKAllSharecompaniessettingsuchtargets.Inmanycases,thesetargetshavealsobeenexternallyvalidatedthroughtheScience-basedTargetsInitiative(SBTi).

19

WhileUKregulationsdon’tmandatesuchtargets,theydorequirecorporatestodisclosethemwheretheyexistaspartoftheirclimate-relatedfinancialdisclosures.

20

,21

SinceCOP26inGlasgow–andthesubsequentformationoftheTransitionPlanTaskforce(TPT)in2022–theUKgovernmenthasalsoencouragedcorporatestoengageincomprehensivetransitionplanning.Asof2025,LSEGdatashowsthat83%ofFTSE100companiesandoverhalf(54%)ofFTSEAll-Sharecompanies

havepublishedsuchplans.

17HMGovernment,TheCompaniesAct2006(StrategicReportandDirectors’Report)Regulations2013,2013[

HMGovernment

]

18ThehighestlevelsofdisclosurequalitywererecordedintheUK(69%),SouthKorea(62%),Japan(61%)andNorthern,SouthernandWesternEurope(61%).EY,GlobalClimateActionBarometer2024,2024[

EY

]

19ScienceBasedTargetsInitiative,SBTiMonitoringReport2023,2024[

SBTi

]

20HMGovernment,TheCompanies(StrategicReport)(Climate-relatedFinancialDisclosure)Regulations2022[

HMGovernment

]

21FinancialConductAuthority,Sustainabilityreportingrequirements,2021[

FCA

]

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TheUK’sadoptionoftheInternationalSustainabilityStandardsBoard’s(ISSB)

recommendations–whichareintheprocessofbeingintroducedforcompanies–willraiseexpectationsfordisclosures.Forpubliclylistedcompanies,the

FinancialConductAuthority(FCA)iscurrentlyconsultingonintegratingUK

SustainabilityReportingStandards(SRS)intolistingrulesfrom2027onward.22ThiswouldalignUKclimatedisclosurerequirementswiththeIFRSSustainabilityDisclosureStandardS2.

Figure2.Shareofcompaniesdisclosingscope1&2andScope3GHGemissionsinFY2024.

Source:LSEGdata(2026).

Figure3.Shareofcompaniesidentifyingdecarbonisationleversandquantifyingtransition

measuresaspartoftheirdisclosuresinFY2024.Source:LSEGdata,2026.

22FinancialConductAuthority,ConsultationPaperCP26/5:Aligninglistedissuers’sustainabilitydisclosureswithinternationalstandards,2026,[

FCA

]

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Chinahasindicatedanambitiontodevelopaunifiednationaldisclosuresystem,alignedwithIFRSS1/S2(ISSBstandards),by2030.

ClimatedisclosuresandtransitionplanningamongChinesecorporatesremain

atanearlierstageofdevelopment.However,bothareevolvingrapidly,withthe

Chinesegovernmentcommittingto“basicallycomplete”aunifiednationalsustain-abilitydisclosurestandardssystem,alignedwithIFRSS1andIFRSS2,by2030.

23

LedbytheChineseMinistryofFinance,ChinaissuedthefirsttrialversionofitsCorporateSustainabilityStandardforClimateinDecember2025.

24

The

standardisalignedwiththeISSBframeworkandrequiresdisclosuresacrossfourcoreareas:Governance;Strategy;RiskandOpportunityManagement;

andMetrics&Targets.Overall,China’sdisclosureregimesshowsubstantial

alignmentwithcoreelementsoftheTransitionPlanTaskforce(TPT)DisclosureFramework.

25

Thesenationalstandardsbuildonextensive,exchange-specificdisclosure

requirementsissuedin2024bytheShanghai,BeijingandShenzhen

exchanges,andseparatelybytheHongKongStockExchange,whichcurrentlyapplytothelargestlistedissuersinChina.

26

,

27

Together,thesemeasuresaredrivingrapidimprovementsintheavailabilityandqualityofclimatedisclosuresamongChinesecorporates.In2025,morethantwo-thirds(71%)oflarge-andmid-sizedChinaAIndexconstituents

disclosedtheirScope1and2emissions,upfromjust38%in2021.

28

Emissionreductiontargetsarealsoincreasingrapidly,withjustoveraquarterofcompaniesintheChinaAIndexnowhavingsetatleastonelong-termtargetaccordingtoLSEGdata.Moreover,between2024andmid-2025,China

recordedthefastestgrowthworldwideincompaniesadoptingscience-basedtargets,increasingfrom137to450companies.

29

ComprehensivetransitionplanningisstilllesscommonacrossChinesecorpo-rates,withonlyfiveofChina’s50largestcompanieshavingdiscloseda

detailedtransitionplanaccordingtoLSEGanalysis.

30

However,thisisexpectedtoincreaserapidlyastrialdisclosuresarebecomingfullyestablishedand

sector-specificguidanceisincreasinglydeveloped.

23GovernmentofthePeople’sRepublicofChina,Chinachartspathtounifiedsustainabilitydisclosureby2030,2024[

GovernmentofPeople’s

RepublicofChina

]

24GovernmentofthePeople’sRepublicofChina,NoticeontheissuanceoftheCorporateSustainabilityDisclosureStandardNo.1-Climate(Trial),2025[

GovernmentofPeople’sRepublicofChina

]

25TransitionPlanTaskforce,DisclosureFramework,2023[

IFRS

]

26HongKongExchangesandClearingLimited,ExchangePublishesConclusionsonClimateDisclosureRequirements,2024[

HKEX

]

27KPMG,ChinaStockExchangesFinalisedMandatorySustainabilityReportingRequirementsforLargerListedEntities,2024[

KPMG

]

28LSEGdata,2026

29ScienceBasedTargetsInitiative,SBTiTrendTracker,2025[

SBTi

]

30BasedonLSEGtransitionplandatacoveringdisclosuresthatincludeeitherquantifiedmeasuresandmilestones,ordatapointsshowingthebreakdownofactionslinkedtooverallGHGemissionstargets.

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4.GreenandtransitionfinanceinChinaandtheUK

Thetransitiontoalowcarboneconomyrequiresbothtransitionfinance,

whichsupportsthedecarbonisationofcarbonintensivesectors,andgreen

finance,whichdirectscapitaltowardsclimatesolutions.Globally,thisrequiresinvestmentsatasignificantscale–withtheIEAestimatingthatdecarbonisingexistingcarbon-intensiveassetsrequiresmobilisingUS$4to5trillionoverthenextdecadealone.31BasedonLSEGdata(Q1,2026),theglobalgreeneconomynowexceedsUS$10trillioninmarketcapitalisation,accountingforalmost10%ofthegloballistedequitiesmarketasofQ12026.32

Inthiscontext,theUKandChinaarebothdevelopingincreasinglysophisticatedapproachestofastgrowinggreenandtransitionfinancemarkets.Thissection

assessesthecurrentstateinbothcountries,focusingonthedevelopmentanduptakeoffinancialinstruments,standards,andsupportingregulatoryframeworks.

Figure4.TheEvolutionofTransitionFrameworksintheUK.Source:TransitionFinanceMarketReview.

Greenbondmarkets

Greenbonds,whereproceedsareearmarkedforfinancingorrefinancingprojectswithenvironmentalbenefits,areamongtheoldestandmostdevelopedgreen

financingmechanisms.AccordingtoLSEGdata,totaloutstandingtradeable

31lEA,NetZeroby2050,2021[

IEA

]

32LSEG,lnvestinginthegreeneconomy,2026[

LSEG

]

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greenbondsexceededUS$3.3trillionbytheendof202533,withestimatesofthecumulativeissuanceoflabelleddebttodatebeingmorethantwicethesize.34

Chinahasbeendevelopingitsgreenbondmarketsforoveradecade.AccordingtoLSEGdata,issuersfromChinahaveraisedinexcessof£50bnontheSBMacrossmorethan60transactions.In2015,thePeople’sBankofChina(PBoC)issued

guidelinesstandardisingcriteriaandcategoriesforgreenbondprojects–acriticalstepinestablishingChina’sgreenfinancialsystem.35Initslatest2025iteration,theCatalogueofProjectsSupportedbyGreenFinance,thecatalogueestablishesunifiedrecognitionstandardsforgreenfinancialproducts,includinggreenbonds,greenloans,andgreeninsurance.36

Issuancefromcorporates,multilateralinstitutions,centralandlocalgovern-

mentsinChinahasgrownrapidly,exceedingUS$124billionin2025(seefigure5)–makingChinanowtheworld’slargestgreenbondmarketbycumulative

issuance.Intandem,thetransitionbondmarketisquicklyscalingup.Such

bondsincludetransition-linkedbonds,whichtietermstoissuers’transitionoremissions-reductiontargets.Bytheendof2025,thecumulativeissuanceof

transition-relatedbondshadapproachedRMB300billion,withmorethanRMB70billionissuedin2025alone,representingayear-on-yearincreaseof10%.37

TheLondonStockExchangelaunchedthefirstdedicatedgreenbondsegmentbyanymajorexchangein2015,laterexpandingitintotheSustainableBondMarket(SBM)in2019.38LSEGanalysisestimatesthatsinceitsinception,the

SBMhashelpedraise£359.2billionthrough967issuancesfromover190

entities.39TheUKhasalsosoughttodevelopasovereigngreenbondmarketthroughgreengilts.Sincelaunchin2021,theUKGovernmentGreenFinancingProgrammehasraisedmorethan£51billionthroughgreengiltsandretail

GreenSavingsBondstosupportthefinancingofcleantransport,renewableenergy,energyefficiency,natureprotectionandclimateadaptation.40

TheUKhasalsobecomeakeyinternationalhubforgreenbondlistings.InApril2025,ChinaissueditsfirstoverseasRMB-denominatedsovereigngreenbond

inLondon.TheRMB6billionissuancewasconductedunderChina’sSovereignGreenBondFramework,supportingRMBinternationalisationandunderscoringLondon’sroleasabridgebetweenChina’sgreenfinancesystemandinterna-tionalinvestors.41

33LSEG,Indexingimpactbonds:insightsintoagrowingandmaturingmarket,2026[

LSEG

]

34ClimateBondInitiative,SustainabledebtmarketreachesUSD7tn,2026[

ClimateBondsInitiative

]

35People’sBankofChina,ChinaGreenBondEndorsedProjectCatalogue,2015[

People’sBankofChina

]

36People’sBankofChina,ChinaGreenBondEndorsedProjectCatalogue,2015[

LSEG

]

37Hou,M.Y.(2026,March5).DagongGlobal:2025annualtransitionbondmarketoperationreport.[

SinaFinance

]

38LSEG,SustainableBondMarket,[

LSEG

]

39LSEG,SustainablebondsontheLondonStockExchange–adecadeofinnovation,2025[

LSEG

]

40HMGovernment,UKGovernmentGreenFinancingProgramme,2025[

HMGovernment

]

41TheStateCouncil–ThePeople’sRepublicofChina,ChinaissuesfirstoverseasRMB-denominatedsovereigngreenbondinLondon,2025[

The

StateCouncil–ThePeople’sRepublicofChina

]

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Figure5.Chinagreenbondissuancehasgrownrapidly.Source:LSEGdata(2026).

Figure6.CumulativeissuanceonLondonStockExchange’sSustainableBondMarket.Source:LSEGdata(2026).42

Thisgrowingcross-borderactivityisalsoreflectedinthedevelopmentofmarkettoolssupportinginternationalinvestors’accesstooffshoreRMBgreendebt.

AspartoftheUK–ChinaGreenFinancecollaboration,FTSERussellandChina

ConstructionBankhavejointlylaunchedtheFTSECCBDimSum(OffshoreCNY)

GreenBondIndex.TheindexprovidestransparentbenchmarkingoftheoffshoreRMBgreenbonduniverseandillustrateshowUK–ChinapartnershipscansupporttheinternationalisationandscalabilityofChina’sgreenfinancemarket.

42LSEG,SustainablebondsontheLondonStockExchange–adecadeofinnovation,2025[

LSEG

]

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Greenloanmarkets

BanklendingplaysacentralroleinChina’sfinancialsystemandintheallo-

cationofcapitaltobothgreenandtransitionactivities.Inrecentyears,policyattentionhasincreasinglyfocusedondevelopingtransitionlendingtosupportemissionsreductionsincarbonintensivesectors.

TransitionloansinChinagenerallytakethreeforms:useofproceedsloans

financingspecificprojects;entitylevelloanssupportingcompanieswithcred-ibletransitionplans;andperformancelinkedloanswherefinancingterms

aretiedtosustainabilityoutcomes.BytheendofJuly2025,transitionloansin

pilotregionshavebeenreportedtoexceedRMB60billion,signallinggrowingdemandforfinancingthatsupportsemissionsreductionswithinexistingindus-trialassets.43

Inpractice,transitionlendingiscloselyintegratedintobanks’creditprocesse