Research on the Pathway of Green Financial System to Implement the Realization of China’s Carbon Neutrality Target

Abstract

To answer to global climate change, promote climate governance and map out a grand blueprint for sustainable development, carbon neutrality has become the target and vision of all countries. Green finance is a means to coordinate economic development and environmental governance. This paper mainly studies the trend of carbon emission reduction in China in the next 40 years under the influence of green finance development and how to develop and improve China’s green finance system to help China achieve the goal of “carbon neutrality by 2060”. The research process and conclusions are as follows: (1) Through correlation test and data analysis, it is concluded that the development of green finance is an important driving force to achieve carbon neutrality. (2) The grey prediction GM (1,1) model is used to forecast the data of carbon dioxide emissions, green credit balance, green bond issuance scale and green project investment in China from 2020 to 2060. The results show that they will all increase year by year in the next 40 years. (3) BP neural network model is used to further predict carbon dioxide emissions from 2020 to 2060. It is expected that China’s CO2 emissions will show an “inverted V” trend in the next 40 years, and China is expected to achieve a carbon peak in 2032 and be carbon neutral in 2063. Based on the results of the research above, this paper provides a supported path of implementing the realization of the carbon-neutral target of China from the perspective of developing and improving green financial system, aiming to provide references for China to realize the vision of carbon neutrality, providing policy suggestions for relevant departments, and provide ideas for other countries to accelerate the realization of carbon neutrality.