Climate change and Chinese green bonds

This chapter examines the dynamics of China’s green bond policy. It shows the different financial institutions and organizations that shape China’s green finance, particularly green bonds policy. We analyze the evolution of green bonds in China and the powerful isomorphic processes that shape them. Domestically, green bonds are shaped by greater domestic market unification and harmonization in the financial sector. Internationally, isomorphic forces come mostly from the European Union’s advancements in green bonds and other efforts in setting international standards. China plays an increasingly important role in setting international green bond standards, as China aims to legitimize and strengthen its climate change response. This study contributes to shedding light on China’s relevance as one of the leaders in terms of bond issuance volume, as well as an inducer of international standardization initiatives towards green bonds.