Challenges and Policy Recommendations for the Development of Green Finance in China

Abstract

The development of green finance in China must integrate green development factors into all business work and operation processes, accelerate the cultivation of new advantages in green finance, and build a carbon-peaking strategy system for financial institutions from the six aspects ranging from organizational structure, policy system, process management, risk management, capacity building to information disclosure, etc., to create a carbon neutrality operation system in all aspects. In particular, it is necessary to take advantage of the new opportunities for the development of green finance under the carbon peaking and carbon neutrality targets, accelerate client marketing, strengthen client reserve, increase credit investment, continue to promote the green transformation of asset structure, fully rely on fintech, implant green elements in strategic businesses such as inclusive finance, housing leasing and other traditional advantageous fields such as infrastructure construction, and build green financial institutions to create unique advantageous features and enhance social influence.