China ESG - Weekly News: China's new guideline on Green development for overseas investment

China's new guideline on Green development for overseas investment and cooperation

The “Green development guidelines for overseas investment and cooperation”, issued jointly by the Ministry of Commerce (MOFCOM) and the Ministry of Ecology and Environment (MEE), encourages Chinese businesses to integrate green development throughout the overseas investment process. Where local standards are insufficient, they also suggest that companies should “follow international green rules and standards”. As such, they represent a step away from China’s traditional reliance on host country rules and could pave the way for the implementation of much higher standards in infrastructure projects under the Belt and Road Initiative (BRI). The guidelines call for strengthening engagement with host country environmental protection organisations. They also name non-fossil energy technologies as key areas for investment.

The guidelines are comprehensive, covering climate, biodiversity and pollution. The document is a significant upgrade on MOFCOM’s 2013 “Guidelines for environmental protection in foreign investment and cooperation”. The emphases have shifted from a bare minimum of pollution control that meets host countries’ standards towards the promotion of a “green development concept” and encouragement of higher standards used in host countries where appropriate.

Source: China Dialogue

China's carbon market records its first cross-border deal

Even as trading on China’s national carbon market dwindled away in its first month to next to nothing, one sign of life emerged this week in the form of an unusual cross-border deal for a voluntary form of carbon emission credits.

On Aug. 9, an institution and an individual from Hong Kong bought nearly 10,000 tons of China Certified Emission Reductions (CCERs) from an Elion Group solar power project in the Kubuqi Desert. It was the first cross-border transaction involving CCERs. The credits are one of several manifestations of China’s system for reducing emissions of carbon dioxide, the main greenhouse gas causing climate change.

Source: The Asset

Baidu sees robust demand in $1 bln bond issue despite China regulatory concerns

Baidu Inc (9888.HK) has raised $1 billion in a two-tranche U.S. dollar sustainability bond, negotiating better-than-expected terms amid strong demand and despite concerns about China's regulatory clampdown on the tech sector.

It was the first major debt fundraising by a Chinese tech firm since the latest onslaught of regulatory actions that began in July, and its success should give other issuers confidence there is still significant global investor interest in Chinese deals.

Its 5.5-year tranche bond raised $300 million and the 10-year tranche secured $700 million, a company statement said.

Baidu's dominance of China's search market underpinned demand and the final price was significantly cheaper than when first flagged to investors on Wednesday. Demand from investors reached more than $5 billion, according to two sources with direct knowledge of the matter.

Source: Reuters

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