- China’s updated green taxonomy consolidates bond and loan market standards into a single catalogue, aiming to cut reporting costs and increase funding for decarbonisation.
- The new framework expands eligible green activities to include climate resilience, methane abatement, passenger rail, green trade, and consumer-focused green finance.
- While seen as a milestone for market efficiency, experts say further policy incentives and clarity are needed to avoid overlaps and strengthen adoption.
China has updated its green taxonomy in a bid to accelerate its net-zero transition, reduce market fragmentation, and lower compliance costs for financial institutions.
