China’s Polluting Industries Allowed to Issue Bonds to Fund Low-Carbon Transition

China is launching a pilot program for companies to issue transition bonds that fund their green transformation efforts amid the country’s decarbonization drive.

Companies in eight sectors — electricity, construction materials, steelmaking, nonferrous metals, petrochemicals, chemicals, papermaking and civil aviation — can issue bonds to help them shift to greener modes of operation, according to a notice published Monday by the National Association of Financial Market Institutional Investors (NAFMII), a self-regulatory body of China’s interbank bond market under the central bank.