[PR] Lianhe Green Provides Second-Party Opinion for The People's Republic of China Sovereign Green Bond Framework

Hong Kong, Feb 20, 2025 - Ministry of Finance of the People’s Republic of China (“MOF”) has released the first The People’s Republic of China Sovereign Green Bond Framework (“Framework”). Lianhe Green Development Company Limited (“Lianhe Green”), an external reviewer recognised by the Hong Kong Monetary Authority’s Green and Sustainable Finance Grant Scheme, has provided its Second-Party Opinion on the Framework. Lianhe Green believes that, under the Framework, MOF can issue sovereign green bond of the People’s Republic of China (“China”), and has given the Framework an assessment opinion of “Excellent”. The release of the Framework marks a milestone in China’s efforts to promote green finance and sustainable development. The Framework not only provides clear guidance for future sovereign green bond issuances by the Chinese government but also lays a solid foundation for China's proactive leadership in the global green finance market, fully demonstrating the Chinese government's commitment to the global sustainable development agenda.

 

Issuer’s Sustainability Strategy

The development of a “Beautiful China” is an important goal in the comprehensive construction of a modern socialist country and an essential part of realizing the Chinese Dream of national rejuvenation. In recent years, China has prioritised the ecological civilization construction, make notable progress in this regard, maintained a strategic resolve to strengthen ecological civilization construction, and unswervingly followed a path of civilized development characterized by productive growth, a prosperous life, and a sound ecology, striving to build a beautiful homeland with blue skies, green lands, and clean waters. Under the guidance of the Opinions of the Central Committee of the Communist Party of China and the State Council on the development of a ‘Beautiful China’ to be promoted comprehensively, in strengthening financial support, MOF will optimise the allocation of fiscal resources for ecological conservation to ensure that the scale of investment meets the demand of conservation tasks. MOF will also vigorously develop green finance, support enterprises that meet the criteria to issue green bonds, attract investment from various types of financial institutions and non-governmental capital, explore modes of financial support for regional environmental protection projects. In addition, MOF will steadily advance innovation in climate financing, providing financial support for the development of a “Beautiful China”. Through the release of this Framework, MOF aims to strengthen policy frameworks of financial support for green and low-carbon development; Improve the investment mechanism and strengthen financial guarantee for green and low-carbon development; and to enhance fund management to support the green and low carbon development strategy. Meanwhile, this will provide global investors with more high-quality green investment opportunities.

 

Lianhe Green's Opinion

Lianhe Green believes that the Framework is an important attempt to support the development of a “Beautiful China” through high-quality development of green finance. It also represents another significant progress in China’s active promotion of international cooperation in green finance. The release of the Framework will provide a key reference for international capital market investments in China’s green areas. The Framework specifies that the proceeds raised will be used to support key areas in China, including Clean Transportation, Sustainable Water and Wastewater Management, Environmentally Sustainable Management and Restoration of Living Natural Resources and Land Use, Marine Ecosystem Protection and Restoration, Pollution Prevention and Control, and Resource Utilization and Recycling. The Framework includes project categories with Chinese characteristics, such as Rural Environmental Remediation, Disposal of Waste Electrical and Electronic Products, and Prevention and Control of Desertification, which reflect China's innovations and practices in the construction of an ecological civilization in line with its national context.

 

Lianhe Green's Evaluation Methodology

To align with international green bond standards while reflecting Chinese characteristics, Lianhe Green, in assessing the Framework, not only referenced the Green Bond Principles (2021 Edition (with June 2022 Appendix 1)) issued by the International Capital Market Association (ICMA) but also referred to the China Green Bond Principles (2022 Edition) issued by the Green Bond Standard Committee.

The Framework and the following pillars addressed in the Framework has received an assessment opinion of “Excellent” from Lianhe Green:

»         Use of Proceeds

»         Process for Project Evaluation and Selection

»         Management of Proceeds

»         Information Disclosure

»         External Reviews

Upon assessment, Lianhe Green considers that the Framework and the green projects listed in the Framework are in compliance with the China Green Bond Principles (2022 Edition) and the Green Bond Principles (2021 Edition (with June 2022 Appendix 1)). At the same time, Lianhe Green’s assessment includes the contributions of the project categories to the relevant United Nations Sustainable Development Goals (“UNSDGs”).

As an observer of the International Capital Market Association’s Green Bond Principles (GBP) and Social Bond Principle (SBP) 2025 Advisory Council, Lianhe Green is committed to providing independent and professional green finance review services. In the future, Lianhe Green will continue to uphold its professional service ethos, supporting various issuers in their green financing activities in overseas capital markets and promoting the healthy development of the global green finance market.

 

For more detailed information on this Second-Party Opinion, please visit the following link to view the full report:

https://lianhegreen.com/uploads/file/20250220/20250220184548451351.pdf

 

About Lianhe Green

Lianhe Green Development Company Limited (“Lianhe Green”) was established in 2023 and is a subsidiary of Lianhe Credit Management Co., Ltd. (“Lianhe Group”) and Lianhe Equator Environmental Assessment Co., Ltd. (“Lianhe Equator”), which is a third-party consulting and certification service provider in China with multiple professional technical edges in “green finance, energy conservation and protection, and carbon testing/certification”. Headquartered and registered in Hong Kong, Lianhe Green is an external reviewer recognized under the Hong Kong Monetary Authority’s Green and Sustainable Finance Grant Scheme. Lianhe Green is mainly responsible for green and sustainable finance certification business in international markets, ESG reporting and consulting, ESG training services, and assists in operating carbon market-related businesses within and outside China.

Lianhe Green aims to become an internationally recognized external verifier for sustainable finance through cooperation with Lianhe Equator’s professional and experienced team in this industry. With a goal of “shaping the origin of the earth and sky, and transmitting the civilization of mankind”, Lianhe Green is committed to helping Chinese and foreign enterprises demonstrate their determination in sustainable development, and providing investors with independent and objective third-party certification services. Leaving green and oceans to future generation is our mission and ambition.  

 

Analytical Standards

»         China Green Bond Principles (2022 Edition)

»        Green Bond Principles (2021 Edition (with June 2022 Appendix 1))

 

Analyst

Polex Lam, CESGA® CEnv CEng

Managing Director

+852 3596 3026

polex.lam@lianhegreen.com  

 

Sherry Li

Analyst

+852 3596 3037

sherry.li@lianhegreen.com 

 

Kathleen Liu

Associate Analyst

+852 3596 3052

kathleen.liu@lianhegreen.com 

 

Contacts 

Ryan Lin

Associate Director, Business Development

+852 3596 3031 | +852 6879 8521

ryan.lin@lianhegreen.com 

 

---

Disclaimer

A Lianhe Green SPO is an assessment of The People’s Republic of China Sovereign Green Bond Framework entities. It is not a credit rating.

Please note that individuals identified in a SPO report are not responsible for the opinions stated therein and are named for contact purposes only. Our report is neither a prospectus nor a substitute for the information assembled, verified and presented to investors by the issuer and its agents in connection with the sale of financial instruments and securities.

Lianhe Green receives compensation from entities and other market participants for conducting this service. None of the aforementioned entities nor its related parties participate in the review process aside from providing information requested by Lianhe Green.

Our assessments are not considered investment advice and they are not and should not be considered as a replacement of any person’s own assessment of the ESG factors related to a financial instrument or an entity. Lianhe Green does not represent, warrant or guarantee that our report will fulfil any of your or any other person’s particular purposes or needs. Lianhe Green does not recommend the purchase or sale of financial instruments or securities or give investment advice or provide any legal, auditing, accounting, appraisal or actuarial services.

Lianhe Green does not audit or verify the accuracy of the information provided to issuers by any third party for the purpose of issuing this opinion. Lianhe Green does not represent, warrant or guarantee the accuracy, correctness, integrity, completeness or timeliness of any part of our opinion.

All published press releases and reports are the intellectual property of Lianhe Green. Any reproduction, redistribution, or modification, in whole or part, in any form by any means is prohibited unless such user has obtained prior written consent from us. 

Copyright © Lianhe Green Development Company Limited 2025