| Green Bond(GB) is a new kind of bond with huge market potential. With simple structure and relatively stable returns, GB are similar to traditional bonds. What makes GB different is that bond proceeds are restricted to funding environmental friendly and climate“mitigation and adaptation” actions. Also, GB demands higher transparency and stricter evaluation and supervision. Domestic studies on GB is still in its infancy, with very limited exploration appearing sporadically. Desk research does not find any graduate studies focusing specifically on GB. There is a lack of systematic exploration towards how to construct GB operating mechanism in China, not to mention studies based on international experience. This paper is to fill the research gap through analyzing GB from a financial perscpective with comprehensive assessment.Adopting qualitative and quantitative methods, and with the help of sufficient data, the basic idea of this paper is to explore how to develop China’s GB market. When analyzing international GB market, various cases are provided in detail for the purpose of comparison. The paper is structured accordingly. Research methods include literature review, spreadsheet analysis,descriptive statistics, comparative analysis and case studies. Unprecedently, this paper reviews systematically the concepts and growing path of green bonds, through comparing domestic and international GB markets. Various similarities and differences between those two markets are found. Conclusions and policy recommendations are given concerning how to construct China’s GB operating mechanism. Since its birth in 2007, GB has witnessed tremendous growth in its market size. Yet world GBs is still in short supply. As the government put forward the concepts of“green-ize” and “green” development, green bond market ushered its golden age of development in China. This paper not only fills the research gap in academic studies, but also generates interesting suggestions for policy. |
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