[Hybrid] EU-China Green Development Series Episode III: Mapping the Common Ground – EU-China ESG Investment Standards (English Language)
Published in June 2020 by the European Parliament and European Council, the European Union (EU) taxonomy for sustainable activities sets a framework to classify ‘green’ or ‘sustainable’ economic activities executed in the bloc. The aim is to fuel investments to meet the objectives outlined in the EU’s Green Deal strategies and achieve the sustainable transformation of the bloc’s economy.
Following the publication of the EU taxonomy, the People’s Bank of China (PBOC) and the European Commission published the first Common Ground Taxonomy (CGT) in November 2021, with further updates a year later. This document lists activities that meet green finance definitions in both the EU and China, making it easier for international investors to provide financial support to Chinese borrowers for sustainable projects.