China's Ministry of Finance released a framework for sovereign green bonds on Thursday, paving the foundation for the country to issue offshore sovereign green bonds and global capital to invest in its green development.

The funds raised by green bonds under the framework will be allocated to eligible green projects included in the central fiscal budget. The funds are expected to contribute to achieving environmental goals such as climate change mitigation and adaptation, natural resource protection, pollution control, and biodiversity preservation.

This initiative aims to diversify the range of high-quality green bond products in the global market and attract international capital to support domestic green and low-carbon development, according to the ministry.