China’s Green Finance Strategy: A Key to Achieve Carbon Neutrality

Abstract

As climate change has established itself as one of the biggest global threats, the role of green finance, which financially supports green projects and leads financial markets to provide environmental incentives, is being emphasized. China recognizes the fact that green finance is necessary to develop green industries for the realization of carbon neutrality. What is more, China understands how to maximize its utility with green finance strategy, for instance by supplying market liquidity to organize green finance activities, establishing a domestic green finance system, and leading discussions on green finance in multilateral cooperation platforms. However, according to these green finance strategies, what we can see is that China is leveraging green finance development strategy not simply as an industrial development strategy, but rather as a repositioning strategy in the international community in this time of great change called the “green transition.” In this regard, Korea needs to analyze China's green finance strategy more closely to accurately determine the opportunities and risks involved. By understanding and analyzing China's green finance strategy, it is hoped that green finance will provide an opportunity for Korea to realize substantial progress in the area of international cooperation.

Keywords: Green Finance, China, Carbon Neutrality