Abstract
Financial innovation and financial risk often emerge at the same time. On one hand, financial innovation can transfer and disperse part of financial risks. On the other hand, financial innovation can also produce new risk factors. If the financial institutes want to put up any carbon financial innovation in the low-carbon economy time, they must improve their risk consciousness, keep away and control financial risk. This paper discusses the potential financial risks in carbon financial innovation, and brings forward relevant policy advices.
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