The Interaction Between the Implementation of Environmental Policy and the Sustainable Development of Financial Market

Abstract

Environment is the material basis for peoples survival and development, but with the rapid development of the economy, especially the expansion of some industries based on the use of environmental resources (such as mining, iron smelting, real estate enterprises and so on) will inevitably have an impact on the environment and produce environmental footprints in production. How to reduce the pollution and damage to the natural environment caused by these environmental footprints without affecting the development of enterprises has become an important issue to be solved in contemporary society. Through the interactive study of environmental policy and sustainable development of the financial market, this paper aims to provide a feasible reference for this topic. However, environmental policy involves many aspects, such as energy, soil, oceans, rare animals and nature reserves. This article mainly discusses policies aimed at energy and waste emissions. This paper uses the research methods of theoretical analysis, literature analysis and review, taking the rise and fall of stocks driven by environmental policies as a starting point, this paper explores the effects of relevant environmental policies on the industrial chain of new energy industries; at the same time, it also quotes Environmental, Society and Governance(ESG), Corporate Society and Responsibility(CSR) and other related terms to discuss the reaction of enterprises and investors to environmental policies in the financial market. This paper finds that environmental policy is conducive to the sustainable development of the financial market, and the development of the financial market can also provide suggestions for the formulation and implementation of environmental policy.