Abstract
Given the ongoing challenges of global climate change, China, as a responsible nation, is committed to achieving the “Dual Carbon” objectives. This includes reaching “Carbon peak1”, which refers to the highest allowable level of carbon emission, by 2030, and attaining “Carbon neutrality2”, which includes fully offsetting carbon emissions by 2060. Green Finance is essential for advancing this policy, and plays an important role in promoting green and low-carbon economic development. While China has made notable progress in Green Finance in recent years, it continues to encounter several challenges, such as inconsistent standards, insufficient product innovation, an imperfect risk assessment system, and a low level of marketization. This essay puts forward a series of countermeasures and recommendations: First, enhance the green financial Standard System by formulating unified standards to improve market credibility and operational transparency. Secondly, boost the innovation of green financial products by introducing more diversified products to meet the market demand. Thirdly, establish a risk assessment framework, such as utilizing a scientific approach to assess environmental benefits and financial risks of green projects; and lastly, advance the market-driven growth of Green Finance, including reducing the dependence on policy and stimulating market activities. Implementing these strategies will support the formation of sustained and healthy development of Green Finance in China, and increase the effectiveness in achieving the “Dual Carbon” goal, along with the transformation to a sustainable economy.
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