Photo. Reuters / Petar Kujundzic

The People’s Bank of China and China Securities Regulatory Commission have co-released a guidance to clarify the threshold of conducting the business of green bond assessment and verification, Securities Daily reported.

The guidance requires that institutions which aim to operate in this area must fulfill four basic conditions.

First, certifying bodies must have set up related workflows, technical methods, quality controls and liability insurance.  Second, they must have been granted assessment and verification licences in the field of energy, climate and environment.

Third, they must be staffed with professionals in the field of accounting, auditing, finance, energy, climate or environment. Fourth, there can be no violations of laws, regulations or bad credibility records in the last three years.

Li Jing, director of Ernst & Young’s China Green Finance Business, said these requirements have all been in line with international assessment standards and will have a positive impact on attracting global investors to China’s green bond market.

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