Theory and Practice of Green Finance under Carbon Neutrality Target

-- Enlightenment from the EU’s Green Finance

Abstract

Global climate change is one of great challenges faced by international community currently. To cope with climate change and protect our Earth home on which human beings live, the countries of the world are proactively exploring development models suitable to their own national conditions, in which low carbon economy featured by low carbon emission and zero carbon emission has attracted much attention. In this background, China proposed a strategic decision of achieving peak carbon emissions before 2030 and carbon neutrality before 2060. This means China will transform from a high-carbon emission country to a low-carbon emission country, and a lot of work such as fund support, technical innovation and industrial structure adjustment should be carried out. While, green finance as a new financing way can guide capital into environmental protection and energy conservation field and promote a sustainable development, which is of important significance in advancing peak carbon dioxide emission and carbon centrality. This paper reviewed the basic concept and theoretical basis of green finance, analyzed the composition, main characteristics and operating effect of the EU’s green financial system, finally summarized the EU’s experience in the practice of green finance, and put forward some suggestions on relevant policies according to the actual situation of China.