China issues 1st "carbon neutrality" bonds for net zero emissions

©Kyodo News

Several Chinese enterprises have issued their first bonds centering on "carbon neutrality," sources close to the matter said Thursday, as President Xi Jinping's leadership has pledged to reach net zero emissions by 2060.

Six Chinese firms, including a power company and an airport operator, have raised a combined 6.4 billion yuan ($989.35 million) to invest in low-carbon projects, the sources said.

The carbon neutrality debts are part of green bonds used to finance projects related to the environment.

A senior official of China's central bank, the People's Bank of China, has said that the issued amount of green bonds has already totaled 1.2 trillion yuan by the end of 2020.

In his address to the U.N. General Assembly in September last year, Xi promised that China would aim to become carbon neutral by 2060. The nation's automakers also plan to phase out new sales of gas-powered cars and bring eco-friendly ones to the mainstream.