What Is Green Finance?

Green finance refers to economic activities to support environmental improvement, respond to climate change and efficient use of resources, that is, to provide investment and financing, project operation, and risk management of projects in the fields of environmental protection, energy conservation, clean energy, green transportation, and green buildings. Financial services. ^[1-2]

Green finance

Green finance has two meanings: one is how the financial industry promotes environmental protection and sustainable development of the economy and society, and the other refers to the sustainable development of the financial industry itself. The former points out that the role of "green finance" is mainly to guide the flow of funds to resource-saving technology development and ecological environmental protection industries, to guide enterprises to focus on green environmental protection and to guide consumers to form green consumption concepts; the latter specifies that the financial industry must maintain sustainable development. Avoid excessive speculation that focuses on short-term benefits. ^[3]

In theory, the so-called "green finance" means

Compared with traditional finance, the most prominent feature of green finance is that it emphasizes the survival and environmental benefits of human society. It uses environmental protection and the effective use of resources as one of the criteria for measuring the effectiveness of its activities, and guides it through its own activities. each

At present, China has entered a critical period of economic restructuring and transformation of development methods. The development of green industries and the traditional transformation of green industries has increasingly strong financial needs, which has made "green finance" a new financial institution, especially the development of the banking industry. Trends and trends. Objectively speaking, although China's financial institutions are generally enthusiastic about the development of "green finance", they face many obstacles in practice, such as "green finance" business with higher risks, lower returns, and information communication mechanisms. Need to be improved, financial institutions lack technical identification capabilities in professional fields, and related policies are not perfect. However, the author believes that to solve these bottlenecks, we can learn from the successful experience of developed countries, especially Germany.

In terms of development at this stage, people s focus on green finance is still mainly concentrated in the banking industry, especially the banks

There are many problems in China's green finance, which are mainly reflected in the following aspects:

I. The lack of good policies and market environment for the development of green finance ^[6]

In summary, it can be seen that green finance follows

In November 2019, the "China Green Finance Development Report (2018)" issued by the People's Bank of China showed that new achievements and new progress were made in green finance development. As of the end of 2018, the green credit balance of banking institutions across the country was 8.23 trillion yuan, an increase of 16% year-on-year; the annual increase was 1.13 trillion yuan, accounting for 14.2% of the increase in corporate and other unit loans over the same period. In 2018, the total financing and refinancing of green enterprises was 22.42 billion yuan. New products, new services and new formats such as green funds, green insurance, green trusts, green PPP, and green leasing are constantly emerging. ^[8]