Green finance refers to economic activities that support environmental improvement, response to climate change, and resource conservation and efficient utilization, that is, investment and financing of projects in the fields of environmental protection, energy conservation, clean energy, green transportation, green buildings, etc. Financial services provided by operations, risk management, etc. Green finance can promote environmental protection and governance, and guide the flow of resources from high-pollution and high-energy-consuming industries to sectors with advanced concepts and technologies. At present, my country's green finance policy is steadily advancing, with considerable development in credit, bonds, funds and other fields.

Characteristics of green finance

Compared with traditional finance, the most prominent feature of green finance is that it puts more emphasis on the living environment interests of human society, and it will protect the environment and resources. The degree of effective utilization is one of the criteria for measuring the effectiveness of its activities, and each economic entity is guided to pay attention to the balance of natural ecology through its own activities. Green finance emphasizes the coordinated development of financial activities, environmental protection, and ecological balance, and ultimately achieves sustainable economic and social development.

Green finance has the same thing as policy finance in traditional finance, that is, its implementation needs to be promoted by government policies. Under the guidance of current policies and the thinking of "economic man", the traditional financial industry either aims at economic benefits or takes completing policy tasks as its responsibility. The latter is policy-driven finance. Environmental resources are public goods. Generally, unless there are policy provisions, financial institutions cannot proactively consider whether the lender's production or services are ecologically efficient.

What are the countermeasures

Increase the guidance of green financial policies. The state should introduce supporting policies for "green credit" as soon as possible, formulate "green credit" catalog guidelines, project environmental protection standards and environmental risk rating standards, relax "green credit" scale control, and implement differential credit policies.

Improve green finance laws and regulations. The state should speed up the process of legalizing energy conservation and emission reduction and determine binding indicators for energy conservation and emission reduction through national legislation, so that "green finance" has laws and regulations to follow.

Smooth information exchange channels. Relevant national departments should strengthen information exchange with financial regulatory authorities and commercial banks, establish an effective information sharing mechanism, and provide technical training to relevant personnel.

Accelerate the reform of financial institutions. Financial institutions should change their traditional business philosophy and actively promote business transformation. In order to fully mobilize the enthusiasm of financial institutions to participate in the development of green finance, incentive mechanisms can be appropriately introduced, based on my country's existing banks, to promote the "Equator Principles" and expand the participants of green finance.