First green bonds under the new China-EU Common Ground Taxonomy (CGT)

Bank of China, China Construction Bank, China Merchants Bank and Industrial Bank have set new milestones in green bond issuance following the introduction of the Common Ground Taxonomy.

green bonds

The Common Ground Taxonomy-Climate Change Mitigation (CGT) is a joint initiative of the People's Bank of China (PBoC) and the European Commission and marks the first comprehensive step towards a mutual approach to green finance taxonomies. Containing a list of green and sustainable economic activities recognised bilaterally by China and the European Union (EU), the CGT shows how the two taxonomies map with each other, through in-depth comparisons of commonalities and differences. Following the consultation version published in November 2021, an updated version covering 17 more climate change mitigation activities was published in June.

The strong reception of these bonds, despite slightly challenging market conditions, underlines the growing demand for high quality green bonds by regular sustainable bond issuers with a credible ESG profile. Crédit Agricole CIB is proud to have accompanied these four key clients and to have played an instrumental role in the launch of this new sustainable debt product.


This USD 500 million 3-year senior unsecured fixed rate offering, drawdown under BOC’s USD 40 billion Medium Term Note Programme, is aligned with the updated version of CGT. The asset pool of the offering is dually certified by Ernst & Young Hua Ming LLP (EY) and Lianhe Equator Environmental Impact Assessment Co. Ltd. (Lianhe Equator) to meet the requirement of the CGT with the commitment to fostering climate change mitigation. Crédit Agricole CIB acted as a Joint Lead Manager and Joint Bookrunner.

China Merchants Bank, Sydney Branch was the first Chinese joint stock commercial bank1 to issue CGT green bond in February 2022

This USD 400 million 3-year senior unsecured fixed rate offering also featured “renewable energy” theme as the proceeds would be allocated towards wind power projects in line with the definition in China Merchants Bank’s Green, Social and Sustainability Bond Framework. Crédit Agricole CIB acted as a Joint Green Structuring Advisor and a Joint Global Coordinator for this transaction, and has the honor to accompany China Merchant Bank to ensure the success of its sustainable bond issuances since its debut international green bond in September 2020.

Industrial Bank Co. Ltd, Hong Kong Branch became the first Equator Bank2 to issue CGT green bond in May 2022

This USD 650 million 3-year senior unsecured fixed rate offering was well received by a diverse investor base, with over 5 times oversubscription ratio. As China's first equator bank and first commercial bank to engage in green finance, Industrial Bank leverages on the "dual carbon" development trend to further expand its green finance strategy. Acting this time as a Joint Green Structuring Advisor and a Joint Global Coordinator, Crédit Agricole CIB is honored to have been Industrial Bank’s partner in its green financing journey since its debut international green bond in 2018, and to have supported many innovative milestone trades in the market since then, including blue bond, carbon neutrality green bond, COVID-19 resilience bond and most recently its first green repo (read more).

carmen tsang “These green bond issuances aligned with the Common Ground Taxonomy - Climate Change Mitigation are not only conducive to accelerating the promotion of carbon emission reduction and facilitating the achievement of China's "double carbon" target, but also demonstrates our Bank's active response to the People's Bank of China's guidance to promote the harmonisation of green taxonomies and refine the green financial ecosystem.” Carmen Tsang, Head of Sustainable Banking Greater China, Crédit Agricole CIB



Christophe Crétot“Crédit Agricole CIB continues to play a significant role in leading Chinese Financial Institutions’ sustainable bond issuances. We are delighted to having supported these issuers in navigating through the heightened market volatility while driving green innovation. With us remaining an impactful sustainable Debt Capital Markets house, we look forward to more success with all our stakeholders in the region and beyond.” Christophe Crétot, Head of Debt Origination & Advisory Asia-Pacific, Crédit Agricole CIB




1 As a joint stock commercial bank, China Merchants Bank is the first share-holding commercial bank wholly owned by corporate legal entities in China.
2 An Equator Bank is a financial institution that has signed the Equator Principles (EP), the financial sector standard for managing environmental and social risks in projects.