Policy Support & Investment Opportunities

China’s green finance market is at a nascent stage but well poised for rapid growth – supported by the steady development of its green finance system, government policies, and initiatives like the carbon trading market and green finance pilot zones. Moreover, China’s dual carbon strategies – achieving carbon peak by 2030 and carbon neutrality by 2060 – establishes long term appeal for foreign investors assessing green industry opportunities and the viability of green finance products.

After decades of breakneck economic growth, China has now made it a priority to develop a green, low-carbon, and circular economy. In a speech to the United Nations General Assembly in September 2020, Chinese President Xi Jinping announced that the country would peak carbon emissions before 2030 and achieve carbon neutrality before 2060.

Accomplishing these goals require significant social and economic transformation and vast investment. Throughout this transition, the green finance market in China will play a critical role in mobilizing and utilizing the investments to fund China’s green industries. Future economic development in China is also likely to feature expansion of the green finance sector. In this article, we will analyze the prospects of the market, based on China’s rollout of policies and initiatives.

What is green finance?

Green finance is defined by the People’s Bank of China (PBOC) as “financial services provided for economic activities that are supportive…