This report sets out the opportunity for China to engage with emerging international policy and market developments around nature and biodiversity and their role in debt markets. China’s international leadership on the environment and its development of sophisticated green financial architecture puts it in a key position to rapidly learn from international best practice, and capitalize on evolving market developments around a new class of Nature Performance Bonds (NPBs).
The growth of these products in sovereign and corporate bond markets offers China global opportunities to deploy these instruments in the current crisis, and to integrate the pricing of nature-related risks and opportunities more broadly into financial markets. The report concludes with recommendations about how China can effectively engage with these developments.