In today s era, what are the strategic suggestions for China s green finance and economic developmen

Mondo Finance Updated on 2024-01-19

In the process of high-quality development of China's economy, green development is a fundamental requirement and a prerequisite for long-term development, and economic development should be consistent with the development of the ecological environment. In the report of the 20th National Congress of the Communist Party of China, it was pointedActively promoting the development of green finance is of great significance to the development of green economy and the transformation of lucid waters and lush mountains into gold and silver mountains. The report of the 20th National Congress of the Communist Party of China has repeatedly emphasized sustainable development and the creation of a green, low-carbon modern economic system, and green finance is one of the important ways to implement this spirit.

With the increasing demand for sustainable development in the international community, green finance will continue to make efforts to promote the vigorous development of the financial industry in the future. With the deepening of economic globalization, in the development of the world economic market, green development has become the trend of future economic development, and green development will also be placed in a prominent position in the development of various industries. At this stage, China's green finance industry is in the initial exploration stage, which means that the infrastructure industry related to the green finance industry is not perfect enough.

At the same time, China has done a good job in the formulation and introduction of policies for the development of green finance economy, and improving the formulation of laws and regulations can continuously standardize the development of China's green finance industry, and thereby promote the sustainable and steady development of China's economic development.

The rational allocation of green finance can play a more substantive role, so that its resources can be reasonably allocated, play a positive role in the improvement and optimization of the financial system, and at the same time, it can also better optimize the industrial structure and continuously enhance the public's awareness of green consumption, etc., but in the actual development of green finance, there are still a series of problems in China's green finance and economic development strategy, which need to be solved and improved urgently.

1 The current situation of green finance in China.

With the further deepening of China's new generation of industrial innovation and active integration into the global market to promote economic globalization, China's demand for green finance continues to expand in order to better develop the economy. According to relevant data in 2020, the cost of environmental pollution in China's economic development accounts for as much as 15% of total GDP. However, the current development of green finance in China is still in the experimental planning stage, and there are still many deficiencies in the overall development plan. In promoting the development and construction of green finance, all sectors of society have begun to pay attention to the importance of green finance.

Green finance plays an important role in the rational allocation of resources. It can promote the sustainable development of China's economy and the adjustment and optimization of the industrial structure, and reflect environmental information in a timely manner. The development of green finance will change the understanding of green consumption among the Chinese people, further change the overall framework of China's financial system, and make the industrial structure more optimized and the economic development more environmentally friendly and reasonable.

Green finance is a new economic development mode based on China's green development concept. It provides diversified green financial products and services to allocate energy and social resources through various means of financial organizations, improves allocation efficiency, optimizes allocation methods, and promotes the sustainable development of China's economy and society. These include the provision of special financial services and related preferential policies for environmental protection enterprises to support them to be compensated while the production costs of environmental protection increase.

These financial services mainly include credit, insurance, etc. In addition, the development of green finance not only has an overall development strategy, but also includes personalized services. From the perspective of the overall development strategy, it is to use policy levers within the overall scope to shift the focus of green finance and continue to develop in the direction of green industry.

Since China put forward the concept of green environmental protection development, some enterprises have changed their production methods and improved their awareness of environmental protection, but then the development of enterprises has also paid a greater cost of environmental protection, in order to better promote the implementation of the concept of environmental protection, the state has formulated preferential policies to promote the change of development mode of Chinese enterprises.

By providing necessary financial services and products for green industries, the state has improved the development of green industries and the application of green technologies in enterprises, and helped enterprises improve their ability to resist risks, which has encouraged the green development of enterprises in the whole society to a certain extent. Compared with traditional finance, green finance is more prominent for environmental protection, making reasonable use of financial leverage, and finding a balance between economic development and environmental protection.

2 The impact of green finance on the development of green economy.

2.1. Contribute to the development of enterprises.

The development capacity and effectiveness of enterprises' industrial projects are affected by funds, and with the promotion of green finance, corporate funds can be better guided. For example, the state has paid more attention to the financing of small and medium-sized enterprises to benefit enterprisesEnvironmental protectionwithEffective resource conservationAt the same time, the enterprises with high pollution and lack of effective pollution facilities in the market have been investigated and rectified, and the preferential support policies for enterprises have also been cancelled.

For green development enterprises, through more financial support, they have strong capabilities in the development process of industrial projects. Compared with the previous industrial enterprises with high pollution and no basic sewage facilities due to financial constraints, green development enterprises have been given more development opportunities, jumped into the core competitive team, and the resources in the industrial market have been redistributed, green development enterprises have become the mainstream trend, while high pollution enterprises have been gradually eliminated.

2.2. Promote economic growth.

The various types of funds and investments generated by green finance activities have a direct role in promoting economic development, which not only further promotes the progress of current green development enterprises, but also triggers new economic growth points. A variety of emerging projects based on green industries, such as natural gas projects, wind power and solar power generation projects, have gradually formed new business models, integrating green development into the development of enterprises, and the total economic volume of enterprises has been rising due to the promotion of green financial activities.

At the same time, the development of technology, green finance activities can achieve continuous economic growth. In particular, some green industrial projects with a high degree of innovation are facing problems in their development, that is, high risk and complex technology. Under the guidance of green finance policies, the support of ** and the assistance of banks have played an important role in continuously promoting the orderly development of financial innovation activities.

2.3. Realize the restructuring of economic development.

In recent years, the supply-side structural reform in China's economic development has become a key task, and the integration of green finance into the development of the green economy has played a positive guiding role, further optimizing and adjusting resources, and helping to improve the quality of the supply-side development of the green economy, so as to better optimize the economic development structure.

On the one hand, from the perspective of first-class policy guidance, the professional project of green credit is proposed, and the emerging green industry is supported by targeted support, and the development of the green industry is provided with practical incentives by increasing the loan amount and reducing the interest rate, so as to continuously help the development of emerging industries and subdivided enterprises, effectively increase the proportion of green industries in the national economy, and improve the economic structureOn the other hand, from the perspective of financial market development, in the process of financial market innovation and development, financial instrument innovation and financial technology innovation have provided assistance for the innovation and optimization of green finance development models.

3 Problems of China's green finance in economic development.

3.1 Problems of their own.

As a new financial development system, green finance should consider the protection of the environment in the actual development, but it is difficult to carry out commercial development in specific environmental protection, and the overall development of green finance must be supported by the state and policies.

It is difficult for the development of green finance to play a prominent role because it has great limitations. It is not difficult to see from the traditional financial development that the development of the financial industry is oriented to large enterprises with outstanding business ability and good corporate reputation, which have broad development prospects, relatively large production scale, and economic and financial strength has a high status in the industry, so these enterprises can easily obtain a large number of development funds with the help of the financial system, which is conducive to the continuous expansion of the scale of enterprises.

At the same time, for the development of small enterprises, they have strong innovation in their development, which is more beneficial to environmental protection, and is also the main force to promote the sustainable and green development of China's social and economic development. Due to the high cost of environmental protection, small enterprises have the problem of low returns in the overall development process, and it is difficult to form economies of scale, and it is difficult to achieve a dominant position in the severe market competition.

3.2 Problems with the institutional system.

In the process of green finance development, due to its inherent limitations, the development must rely on national and first-class policy support and legal guarantees. However, because it is a new mode of financial development, it has been produced in China for a short time, and the state has not established a sound green finance development system and policy guarantee system.

Although there is a certain policy support, but it is also a limited support impact and role, although the green finance development support policy is complete but not precise, there is no certain pertinence and prominence, enterprises in the development process is difficult to get the real help of the policy, compared with the actual needs of enterprise development, these help is difficult to produce a huge effect. Coupled with the innovative nature of green finance itself, there are few enterprises in China that adopt this kind of financial development mode, and it is difficult to form economies of scale, so a large number of enterprises are in a passive position in the market.

Epilogue. In summary, the development of green finance is in line with China's green development concept, and in the context of China's vigorous promotion of green environmental protection, a long-term green finance development plan should be formulated, guided by solving practical development problems, constantly exploring problem-solving strategies, innovating development models, and exploring a socialist economic development mode with Chinese characteristics suitable for China's national conditions. Although the development of green finance originated abroad, China is already in a leading position in the world, so in practice, it is necessary to strengthen the top-level design of the system, improve the infrastructure, and set a good example for the development of global green finance.

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