SHANGHAI, (Reuters) – China has begun to issue so-called low-carbon transition bonds in order to assist companies becoming greener. This is as Beijing strives for carbon neutrality.

The pilot program will see eight companies from electric power, steelmaking and petrochemicals issue bonds in order to finance decarbonisation efforts.

These debt instruments complement green bonds and form part of China’s sustainable financing.

China, which is the biggest global producer of climate warming greenhouse gases, has promised to cut its emissions below 2030, and become carbon neutral in 2060.

NAFMII stated that the proceeds from the bonds would be used for green initiatives, including the production of cleaner coal, green technology, and the use and conservation of clean energy.

China Huaneng Group Co. Hualu Holdings. Baosteel were among those that issued China’s low carbon transition bonds.