Finance plays a very important role in Green economy transition. A systematic and efficient green finance system can attract private investment and enable China to achieve growth in financial sector and economic and green development. 

In China, the contradiction between short-term economy growth and environmental protection is still existing. However, China’s financial regulators have strong binding effects on financial institutions overall. Consequently, if a top-down green finance system is built, it will definitely play a positive role on green economy transition. 

Green finance has been listed in the most important national development strategies. The state council proposes setting up green finance system, including green credit, green stock indices, green funds, etc. 

Green bonds are fixed income, liquid financial instruments that are created to fund projects that have positive environmental and/or climate benefits and gradually used for the development of green finance in recent years. Since 2013, the global green bond issuance has been growing explosively. The global green bond market took off in 2014 with $36.6bn issued; triple the amount issued in 2013 ($11bn). 

On March, 27, 2015, International Capital Market Association (ICMA) worked with more than 130 financial institutions and published the Green Bond Principle, reaching a consensus on its definition-- Green Bond refers to any type of bond instruments where the proceeds will be exclusively applied to finance or refinance in eligible Green Projects. 

China’s bond market enjoys huge potential for development. By the end of December, 2014, the balance of China’s bond market was 3.59 billion RMB, ranking the third globally and second in Asia in terms of absolute value. 

In this context, the director of Xianda (Tianjin) Seawater Resources Development Co., Ltd. Mr. Michael Mah was invited to attend the London Stock Exchange Group’s inaugural China Green Bond Conference to promote the Integrated Seawater Desalination and Salt Making Project of Nangang Industrial Zone in Tianjin Economic and Technological Development Area.