China shuns ‘clean coal' in new green financing guidelines

Billions of yuan have been used in green financing of coal-related projects.

China has excluded “clean coal” from a list of projects eligible for green bonds, according to long-awaited new draft guidelines published by the central bank.

The new catalogue of eligible projects replaces the previous one published in 2015, and will be open to public consultation until 12 June, the People’s Bank of China said in a notice.

China has sought to use green financing to pay for its transition to cleaner modes of growth, but the previous catalogue allowed it to be raised for the “clean use of coal”, including coal-washing plants that remove impurities, and technologies that cut pollution during combustion.

The inclusion of “clean coal” in the 2015 list had put China at odds with global standards, a point of contention for some international investors and many environmental groups.

Chinese financial institutions provided billions of yuan in green financing to coal-related projects last year, and have also supported other fossil fuel projects, including the expansion of an oil refiner.

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