China’s central bank has revealed that it is co-operating with the European Union to converge green investment taxonomies across the two markets, aiming to implement a jointly recognised classification system for the environmental credentials for businesses by the end of this year.

Yi Gang, the governor of the People’s Bank of China, said at the China Development Forum in March that the primary goal of the central bank over the next five years was to implement and standardise a green finance system in the country in co-ordination with global partners.

The bank said it was an “urgent” task to fulfil the goals of having domestic carbon emissions peak before 2030 and turn carbon neutral by 2060, as pledged by Chinese President Xi Jinping last September.