China to Issue First RMB-Denominated Sovereign Green Bond Worth ￥6B in London

On Wednesday 19 March 2025, the Chinese Ministry of Finance (CMoF) announced it will issue the first yuan-denominated sovereign green bond in London. China expects to raise some RMB 6 billion, or USD 833 million, from these bonds.

The decision comes after the recent UK-China Economic and Financial Dialogue when UK Treasury Secretary Rachel Reeves traveled China in January 2025. During her visit, she met with Chinese Vice Premier He Lifeng to explore the reinforcement of the bilateral partnership in the fields of finance and climate. Subsequently, the CMoF released a framework for #GreenBonds, paving the way for such offshore instruments to finance sustainable development.

In March 2025, UK Energy Secretary Ed Millbrand also paid a visit China. After meeting with Millbrand, Chinese Vice Premier Ding Xuexiang reiterated Chinese willingness to deepen cooperation with UK to promote the #EnergyTransition and #decarbonization.

From China’s perspective, such a move is in line with its stated policy to promote ‘high quality development.’ The funds raised will go towards climate adaptation adaptation and mitigation measures, biodiversity protection, and to promote the low-carbon economy in general.

As per its Nationally Determined Contributions (#NDC) to combat #ClimateChange, China plans to cap emissions by 2030 and to achieve #NetZero by 2060. #SustainableDevelopment and #GreenFinancing are global imperatives and tend to be generally welcome. In the past, China floated Green Bonds on the Hong Kong IFC; the choice of the London #IFC is meant to tap into more international investors.

Being a pilot, this total value of the green bond does not involve a huge amount, but it does carry a heavy symbolic weight as the first-ever yuan-dominated green bond issued on an offshore market. China also hopes this step will constitute a milestone in the ‘internationalization of the RMB.’