$ 500 million of senior variable rate greenbacks were issued by the Macau branch of the China Construction Bank using the China-EU common ground taxonomy.
China Construction Bank issued the first green bond under the Common Taxonomy of Sustainable Finance between China and the EU.
The $ 500 million senior variable-rate greenbacks, issued by the Macau branch of the China Construction Bank, mark the first green bond issue under the Common Ground taxonomy, jointly released by the People’s Bank (PBOC). of China) and the European Commission in November 2021.
The Common Ground Taxonomy project was launched in July 2020, following which the IPSF (International Platform for Sustainable Finance) created a working group to compare the catalog of projects supported by China’s green bonds and the EU sustainable finance classification system.
The resulting Common Ground taxonomy prescribes a list of 80 economic activities divided into six main categories – energy, manufacturing, construction, transportation, solid waste, forestry – that are considered green and sustainable. The taxonomy also provides criteria for evaluating a project’s contribution to climate change mitigation.
The Common Ground taxonomy is expected to play a central role in increasing the comparability of sustainable finance taxonomies and definitions of green and sustainable activities on a global scale.
Linklaters acted as international legal advisor on the China Construction Bank green bond issue.