Research on the Current Situation and Development Strategy of Green Finance Driven by the “Carbon Peaking and Carbon Neutrality” Goals

Authors

  • Yilin Jiang
  • Jiaying Su
  • Bingyu Yao

DOI:

https://doi.org/10.61173/na9pzy11

Keywords:

“Dual carbon” Goals, Green Finance Development Strategy, SWOT Analysis

Abstract

This article examines the current state and future direction of green financing in relation to the aspirations of “Carbon peaking and carbon neutrality”, with the application of the SWOT analysis framework to comprehensively examine the current situation of green finance, pointing out that its development has not only significant advantages and broad opportunities, but also faces multiple challenges and potential disadvantages. The analysis shows that under the catalysis of the “ Carbon peaking and carbon neutrality “ goals, green finance has received policy preferences and resource injection at the national level, and the market has shown a momentum of accelerated development. Under the guidance of policies, state-owned banks are actively exploring the innovation of green financial products, and international cooperation is becoming increasingly close, becoming the engine to promote the progress of green finance. However, the road ahead for green finance has not been easy. Problems such as lack of standardization, policy and economic volatility, lack of professional talent and technology, and low market awareness have become stumbling blocks to the deepening development of green finance. In view of these challenges, this paper deeply studies the development strategies of green finance and puts forward targeted suggestions, aiming to provide useful inspiration for scholars and practitioners in the field of green finance, help make breakthroughs in the theory and practice of green finance, and contribute to the construction of a green and low-carbon future economic system.

References

[1] Cao, Y., Li, X.M., Yan, H.B., & Kuang, S.Y. China’s Efforts to Peak Carbon Emissions: Targets and Practice. Chinese Journal of Urban and Environmental Studies. 2021, 9(01), 83-96.

[2] Wang, Y., Guo, C.H., Chen, X.J., Jia, L.Q., Guo, X.N., Chen, R.S., & Wang, H.D. Carbon peak and carbon neutrality in China: Goals, implementation path and prospects. China Geology. 2021, 4(4), 720-746.

[3] Chen, J.M. Carbon neutrality: Toward a sustainable future. The Innovation, 2021, 2(3), 100127.

[4] Lindenberg, N. Definition of Green Finance. Available at: https://web.archive.org/web/20180721183829id_/https://www. die-gdi.de/uploads/media/Lindenberg_Definition_green_finance. pdf. 2014. [Accessed 9 Aug. 2024].

[5] Cui, M. and Han, L. Research on the Current Situation, Challenges and Path of Green Finance Development in China under the Background of ‘Double Carbon’. Highlights in Business, Economics and Management, 2023, 7(7), 15–23.

[6] Industrial and Commercial Bank of China Limited Green Finance Information Disclosure Report 2023. Available at: https://v.icbc.com.cn/userfiles/Resources/ICBCLTD/ download/2024/GreenFinance20240507.pdf. 2023. [Accessed 8 Aug. 2024].

[7] Yang, M.Y., Yu, M., Zhang, P. & Feng, T. SWOT Analysis of Green Finance Development under Dual Carbon Goals. Scientific Journal of Economics and Management Research, 2022, 4(6), 2022.

[8] Gong, Y., Song, J. & Li, J. Research on green financial product innovation under the background of the «dual carbon» policy: A case study of Zhangjiakou City, Hebei Province. Business Exhibition Economy, 2024, 14, 142-145.

[9] The people’s bank of China. 2023 Statistical Report on Loan Investment of Financial Institutions. Available at: http://www. pbc.gov.cn/goutongjiaoliu/113456/113469/5221508/index.html [Accessed 8 Aug. 2024].

[10] Xiang, W, Lan, Y., Qiao, Q. and Gan, L. The impact mechanism of China’s green finance on the transformation and innovation of high-energy-consumption enterprises. PLOS ONE, 2023,18(10), e0293022–e0293022.

[11] Yuan, X., Shang, L., & Xu, J. Green Financial Policy, Resource Allocation and Corporate Environmental Responsibility. Sustainability, 2024, 16(15), 6273–6273.

[12] Xue, Y., Ma, T., Zhuang, T., & Ma, Y. The development of green finance under the goal of carbon neutrality: A review from China’s perspective. Frontiers in Earth Science, 2023, 11, 1123020.

[13] Huang, H. and Zhang, J. Research on the Environmental Effect of Green Finance Policy Based on the Analysis of Pilot Dean&Francis Zones for Green Finance Reform and Innovations. Sustainability, 2021, 13(7), 3754.

[14] Wang, Z. and Zhang, Y. A study on the coordinated development of green finance and the electricity market under the “dual carbon” goals. New Finance, 2023, 2, 31-34.

[15] Zhou, X.Y., Caldecott, B., Hoepner, A.G., & Wang, Y. Bank green lending and credit risk: an empirical analysis of China’s Green Credit Policy. Business Strategy and the Environment, 2022, 31(4), 1623-1640.

[16] Lee, J. W. Green finance and sustainable development goals: The case of China. Lee, Jung Wan (2020). Green Finance and Sustainable Development Goals: The Case of China. Journal of Asian Finance Economics and Business, 2020, 7(7), 577-586.

[17] Zhang W, Zhao D. International Cooperation on China’s Green Finance. Green Finance in China: Policies, Experiences and Challenges. Singapore: Springer Nature Singapore, 2024: 147-160.

[18] UNFCCC. Paris Agreement. United Nations. Available at: https://unfccc.int/sites/default/files/english_paris_agreement.pdf. 2015. [Accessed 9 Aug. 2024].

[19] Fu, C., Lu, L., & Pirabi, M. Advancing green finance: a review of sustainable development. Digital Economy and Sustainable Development, 2023, 1(1), 20.

[20] Feng W., Bilivogui P., Wu J., & Mu X. Green finance: current status, development, and future course of actions in China. Environmental Research Communications, 2023, 5(3), 035005.

Downloads

Published

2024-10-29