China Issues Standard on Carbon Financial Products

On 12 April 2022, the China Securities Regulatory Commission (CSRC) issued a standard JR/T 0244-2022 Carbon Financial Products (hereinafter referred to as the "Standard"), which came into force upon promulgation.

In order to hit carbon emission peak before 2030 and achieve carbon neutrality by 2060, it is hereby formulated the standard on Carbon Financial Products to

• promote the establishment of a national unified carbon emission trading market,

• assist relevant institutions in identifying, using and managing carbon financial products, and

• promote the low-carbon transition of the real economy

The Standard classifies carbon financial products into:

1. Carbon financing instruments: include carbon bonds, carbon asset pledge, carbon asset repurchase, carbon asset custody, etc.

2. Carbon trading instruments: include carbon forward, carbon futures, carbon options, carbon swaps, carbon lending, etc.

3. Carbon supporting instruments: include carbon index, carbon insurance, carbon fund, etc.