Nature Related Sustainable Finance in China 2025

Use of proceeds Energy, buildings and transportation have consistently been the primary categories in the sustainability bond market, primarily targeting carbon emission reduction and accounting collectively for more than 54% of the total, equivalent to $436.2 billion (Figure 5). The proportion of bonds linked to nature-related themes, such as water management, pollution control, resource conservation and biodiversity conservation, remains modest, collectively accounting for approximately 18% of total sustainable bond issuance.23 Use of proceeds of sustainability bonds issued in 2023 by value ($ billion) FIGURE 5 160 140 120 100 80 60 40 20 0Others4% 4% 5%Employment generation including through the potential effect of SME financing and microfinance Affordable basic infrastructure Socio-economic advancement and empowement 6% Access to essential services 8% Affordable housing 0. 1%Covid-19 response 1% Food security28%Nature excluding climate change4% 2% 2%Pollution prevention and control Terrestrial and aquatic biodiversity conservation Eco-efficient production technologies and processes 4% Sustainable management of living natural resources 5% Sustainable water management18%Climate change3% 9% 11%Climate change adaptation Green buildings Energy efficiency 13% Clean transportation 17% Renewable energy54% Notes on methodology: The value of bonds with multiple uses of proceeds was pro-rated to each use. Source: Environmental Finance.24 12