China’s financial regulators have announced the introduction of the Green Finance Endorsed Project Catalogue, establishing a new classification system to determine which economic activities qualify for funding through green financial products. This initiative was released by the People’s Bank of China (PBOC), the National Financial Regulatory Administration, and the China Securities Regulatory Commission. The catalogue is designed to be uniformly applied to all types of green financial products, effectively consolidating the various standards within China that currently apply to green bonds and loans, though it does not extend to equities.
According to a statement from the PBOC, the catalogue aims to “enhance the liquidity of the green finance market, improve the efficiency of green financial asset management, and reduce the cost of project identification.” The new catalogue is set to take effect on 1 October 2025. This development occurs as several other countries are implementing or developing their own sustainable finance taxonomies, including Australia, the EU, Singapore, Hong Kong, Canada, and India. In contrast, the UK has recently decided not to proceed with plans for its own green taxonomy.
Besides creating a unified system for green finance products, the new catalogue expands the range of categories beyond the current standards. It now includes projects related to energy conservation and carbon reduction, environmental protection, resource recycling, green and low-carbon energy transition, ecological protection and restoration, green infrastructure upgrades, and green services, trade, and consumption.
An analysis by Sustainable Fitch, a sustainability-focused analytics business within the Fitch Group, highlights the most significant changes from China’s current standards. These include the addition of “green trade” and “green consumption” categories, which reflect an increased focus on areas across the green value chain beyond production. Additionally, a new secondary category, “Green and low-carbon transition of key industrial sectors,” has been introduced, facilitating financing for projects aimed at decarbonising industries that are not yet considered green.
Sustainable Fitch’s analysis also notes that while the catalogue partially aligns with international standards, such as the International Capital Market Association’s (ICMA) Green Enabling Project Guideline, there are divergences. These include China’s inclusion of less stringent qualifications for “green-enabling” activities and differences in determining project eligibility.
Sustainable Fitch commented: “We think the updated catalogue could guide capital flows towards more industrial decarbonisation activities and localised production of green technologies. This aligns with China’s ambitions to solidify its key position in global supply chains.”
