The Policy and Development of China’s Green Finance

Abstract

This paper explores the evolving landscape of green finance in China, elucidating its pivotal role in driving sustainable economic growth amidst escalating global environmental concerns. Encompassing an intricate analysis, it examines China's ongoing green finance initiatives, spotlighting key policies and program advancements. The research delves into the external macro-environmental impacts on China's green finance arena, employing the PESTEL framework. This holistic approach underscores the intricate interplay between domestic policies and worldwide trends. The study offers two strategic recommendations to fortify China's green finance endeavors. The initial proposal emphasizes bolstering the legal framework to underpin environmental protection, advocating for rigorous standards to counteract greenwashing, ensuring transparency, and nurturing confidence in green financial products. The second recommendation centers on enhancing Environmental Impact Assessment (EIA) legislation, promoting an inclusive and participatory approach to engender collective ownership of environmentally significant projects. By amplifying public involvement, this strategy augments decision-making processes and magnifies the influence of green finance initiatives. This synthesis furnishes a comprehensive comprehension of China's trajectory in green finance, encompassing its present status, external influences, and strategic trajectory. Armed with these insights, stakeholders and policymakers can collaborate to fortify China's dedication to sustainable development, steering the nation toward an ecologically conscientious economic trajectory.