A new report on the development of green finance in China highlights inadequacies in the country’s carbon trading marketplace, while also calling for the launch of more financial tools to abet activity levels.
Renmin University recently released the “Green Finance Development Research Report 2021” (绿色金融发展研究报告2021) at the “Carbon Neutrality 2060 and Green Finance Forum” (碳中和2060与绿色金融论坛).
The report points out that activity on China’s carbon trading market remains inadequate, and requires the incorporation of more sectors to increase enterprise differentiation, as well as the introduction of more financial tools and channels in order to increase carbon trading activity.
The report highlighted the importance of emissions reductions to the Chinese economy and future economic policy.
“In actuality, carbon neutrality will see the fundamental overturning and reworking of China’s future economic model,” said the report.
In 2020 Beijing set the greenhouse gas targets of achieving peak carbon by 2030 and zero carbon by 2060, while in 2021 the Chinese central bank launched a concerted campaign to drive the growth of the green finance market in China.