Hundreds of billions of dollars of green debt have been issued in recent years, and the trend continues as a large Asian financial group joins an environmental initiative.

Ping An of China Asset Management (Hong Kong) is pushing its “green” credentials by joining a programme focused on environmentally-linked debt, part of a trend in Asia and other parts of the world. 

PAAMC, part of Ping An, the financial conglomerate, has become a Climate Bonds Partner, and is the first Chinese asset manager to have taken the step, it said in a statement yesterday. 

“Green bonds” – debt that is used to finance environmentally-vetted projects such as solar energy, are growing. Asian financial firms such as UOB and fellow Singaporean bank DBS have recently broadcast their work in this field, for example (see here and here). A cumulative $580 billion of green bonds were sold through 2018, according to Bloomberg New Energy Finance (source: Bloomberg, 24 March 2019). The market is predicted to keep rising as firms require finance to meet carbon reduction targets set by governments in certain parts of the world.

"Climate change is the biggest challenge facing humanity. Its impact and consequences have become obvious. Ping An is committed to promote green investments and sustainable development. This historic partnership with Climate Bonds Initiative is to align our green investment mandates to global best practices. It's time for all of us to act and mobilise capital for green finance. Let's make this a better world for our children,” Chi Kit Chai, chief investment officer and head of capital markets, Ping An of China Asset Management (Hong Kong), said.