Regulators Launch Comprehensive Green Investment Framework
China has unveiled a new Green Finance Endorsed Project Catalogue, establishing a unified standard to define which economic activities qualify for green financing across the nation. The effort, led jointly by the People’s Bank of China (PBOC), the National Financial Regulatory Administration, and the China Securities Regulatory Commission, aims to consolidate previously fragmented rules for green bonds and loans into a single regulatory framework.
The catalogue, which goes into effect on October 1, 2025, is designed to support greater liquidity and transparency in the green finance market while cutting project identification costs. It excludes equities but will apply uniformly to all other green financial products in China.
Expanded Categories Reflect Wider Green Priorities
The updated taxonomy significantly broadens the definition of eligible green activities. In addition to traditional areas like energy conservation and environmental protection, the new framework includes categories such as resource recycling, green infrastructure upgrades, low-carbon transitions in industry, and for the first time, green trade and green consumption.
This expansion marks a shift in focus from purely production-based green projects to a more comprehensive view that encompasses the entire green value chain. It also introduces a secondary category allowing investments in high-emission industries undergoing decarbonization, signaling China’s intent to facilitate green transitions in hard-to-abate sectors.
China Aligns — Partially — With Global Standards
According to an analysis by Sustainable Fitch, the new catalogue brings China closer to international standards like those of the International Capital Market Association (ICMA), though it still diverges in key areas. For example, China permits less stringent qualifications for “green-enabling” activities and follows a unique method for assessing project eligibility compared to global norms.
Despite these differences, analysts view the update as a positive step toward aligning China’s green finance efforts with global expectations. The catalogue is expected to help attract more investment into domestic green technologies and support the country’s ambitions to become a dominant player in sustainable global supply chains.
Part of a Broader Global Trend
China’s move comes as other economies including the EU, Canada, Singapore, India, and Australia are actively developing or refining their own sustainable finance taxonomies. In contrast, the UK recently scrapped its plans to launch a dedicated green taxonomy.
With the release of this catalogue, China positions itself at the forefront of sustainable finance in Asia, providing a clearer and broader roadmap for investors seeking green opportunities in the world’s second-largest economy.
