China is set to issue its first overseas sovereign green bonds in yuan, raising up to 6 billion yuan ($829 million) in London. This move marks a significant milestone in China’s efforts to attract global investment for its green and low-carbon initiatives while strengthening financial cooperation with the UK. 

Announced by China’s Finance Ministry, the issuance aligns with discussions from the China-UK economic and financial dialogue held in January, where Chinese Vice Premier He Lifeng and UK Finance Minister Rachel Reeves reinforced their commitment to sustainable finance collaboration. The bonds are part of China’s broader strategy to fund domestic green projects and accelerate its path toward peak carbon emissions before 2030 and carbon neutrality by 2060. 

China’s framework for sovereign green bonds, outlined earlier in February, explicitly aims to channel international funds into green and low-carbon development. The government sees this as a critical tool to finance renewable energy, emissions reduction projects, and infrastructure supporting a more sustainable economy. 

By selecting London as the listing venue, China is reinforcing its financial ties with the UK while positioning itself as a leader in the global green finance market. The move comes at a time when both nations are actively seeking to expand climate-focused investments. Vice Premier Ding Xuexiang emphasized this collaboration, stating that China is eager to deepen its partnership with the UK in advancing low-carbon development. 

As China continues expanding its green bond program, this first sovereign issuance in the UK sets the stage for future international offerings, further integrating China into the global sustainable finance ecosystem. The bond issuance is expected to attract institutional investors looking for credible, government-backed opportunities in ESG and carbon-neutral strategies. 

Sources : 

https://esgnews.com/china-to-issue-first-sovereign-green-yuan-bonds-in-uk-raising-829-million/ 

https://www.reuters.com/sustainability/sustainable-finance-reporting/china-issue-sovereign-green-yuan-bonds-uk-first-time-2025-03-19/ 

https://english.news.cn/20250319/4a6e228fca784651a3939f3cd1f348ce/c.html 

https://www.zawya.com/en/world/china-and-asia-pacific/china-to-issue-sovereign-green-yuan-bonds-in-uk-for-first-time-vnj39sbx