At the Lujiazui Forum plenum on June 18, CPPCC standing committee member Zhou
Hanmin said international green bonds typically show a green premium—slightly
lower financing costs than plain bonds—but that premium is not evident in China.
Chinese issuers receive limited benefit from green bond labels, leaving issuance
incentives are weak. Zhou blamed a shallow domestic green investor base, limited tax
incentives and inadequate risk compensation, and proposed establishing tax
incentives, improving interest-subsidy policies and creating a green guarantee
mechanism to ensure green assets carry value.
