China’s Ministry of Finance has announced plans to issue up to 6 billion yuan ($829 million) in yuan-denominated sovereign green bonds in London, marking the country’s first overseas issuance of such bonds.
The move follows a China-UK economic and financial dialogue held in Beijing in January, co-chaired by Chinese Vice Premier He Lifeng and British Chancellor Rachel Reeves. The plan was initially outlined in a policy statement following the discussions, with the finance ministry confirming: “China agrees that it would issue an inaugural yuan-denominated sovereign green bond in 2025 and that this would be listed in London, the first in a programme of Chinese green sovereign issuances in the UK.”
In February, China’s finance ministry released a framework for sovereign green bonds, positioning the initiative as an effort to attract international investment for domestic green and low-carbon projects.
The issuance aligns with China’s broader climate commitments, including its pledge to peak carbon emissions before 2030 and achieve carbon neutrality by 2060. In recent years, the world’s second-largest economy has increasingly turned to green finance instruments, including green bonds, to fund its transition to a low-carbon economy.
During talks in Beijing on Monday, Chinese Vice Premier Ding Xuexiang expressed China’s commitment to strengthening collaboration with the UK in sustainable development. Speaking with British Energy Minister Ed Miliband, Ding reaffirmed China’s willingness to deepen cooperation in green and low-carbon initiatives.
The upcoming bond issuance in London is expected to enhance China’s engagement in global green finance markets while bolstering UK-China financial ties. Further details on the issuance programme are yet to be disclosed.
