Green finance meaning policy and problems respectively?

Green Finance Meaning

Green finance refers to the financial services provided to support the economic activities of environmental improvement, response to climate change, and the economical and efficient use of resources, i.e., project investment and financing, project operation, and risk management in the fields of environmental protection, energy conservation, clean energy, green transportation, and green building. Green finance can promote environmental protection and governance, and guide the flow of resources from high-pollution, high-energy-consumption industries to sectors with advanced concepts and technologies. At present, China's green financial policy has been steadily advancing, and there has been significant development in the fields of credit, bonds, funds, etc.

What are the policies and problems?

Policy:

1, big green financial policy guidance. The state should expeditiously introduce supportive policies for "green credit", formulate "green credit" catalog guidelines, project environmental standards and environmental risk rating standards, and relax "green credit". The scale of green credit control, the implementation of differential credit policy, so that commercial banks to carry out "green finance" business profitable.

2. All green financial laws and regulations. The state should speed up the legalization process of energy saving and emission reduction, and determine the binding targets of energy saving and emission reduction through national legislation, so that "green finance" can be based on the law and have rules to follow.

3, smooth information exchange channels. The relevant state departments should strengthen and financial regulators and commercial banks to exchange information between the establishment of an effective information **** enjoyment mechanism, while the relevant personnel for technical training.

4, fast financial institutions reform. Financial institutions should change the traditional business philosophy and actively promote business transformation. For example, from the perspective of commercial banks, the development of green finance should do the following work. First, we should introduce environmental concepts into our daily business activities and strengthen the environmental awareness of employees and the environmental assessment of business processes. Second, it is necessary to further improve the level of risk management and business innovation in a targeted manner. Third, to further liberalize and expand the scope of integrated operation of the banking industry, it is necessary for commercial banks to organically combine financial innovation, realize strategic transformation, develop integrated operation and develop green finance, and creatively and actively develop the green financial market through a variety of financial instruments such as loans, wealth management, guarantees, leases, trusts and so on.

5, strong>Strong international exchanges and cooperation, and learn from international advanced experience.

Existing problems:

A green financial development also lacks a good policy and market environment

China's environmental policy, the legal system is still not perfect. Environmental economic policy is also still in the conception and exploration stage, local protectionism, poor policy implementation and other phenomena in the field of environmental protection is still relatively common, environmental protection information is also not transparent. 2008, the State Environmental Protection Administration for the four times the environmental impact of law enforcement, relying on all the direct call to stop the large projects, regional restrictions, watersheds, such as administrative means of restriction of the approval, the long-term effect is very limited. Although, China has incorporated energy saving and emission reduction indicators into the performance appraisal index system of local governments, the implementation of environmental protection policies in specific areas, specific projects and specific enterprises is not yet very smooth. China also lacks a perfect release mechanism for information on environmental violations. Financial institutions not only lack environmental expertise, but also face the problem of high cost of access to information. Now the People's Bank of China credit system "enterprise basic credit report" can provide "environmental protection information" involving a very narrow range of enterprises. Financial institutions can only obtain information on the environmental violations of most enterprises and projects that do not fall within the scope of national monitoring through on-site investigations or media reports, and some of them are even difficult to obtain, making the information extremely asymmetric.

Second, the development of green finance is still a lack of internal and external incentives and supervision

China's financial institutions shareholders, investors, and employees of environmental protection and social responsibility awareness is not strong. Financial institutions within the corporate governance has not been established with the green financial supporting system, but also the lack of green financial development needs to meet the constraints of the incentive mechanism. In this way, the awareness of environmental protection and social responsibility within financial institutions is still easily diluted by the heavy pressure of operational assessment and attractive economic benefits. From the external point of view, government departments have not yet established an incentive mechanism for financial institutions to develop green finance, China's enterprises and individuals are not strong enough to "green consumption" will not be enough to supervise financial institutions.

Three, the financial authorities in charge of the development of green financial strategic arrangements and policy support is relatively lack of

Now the financial authorities in charge of the green financial policy objectives are still mainly stay in the restriction of the "two high and one capital" enterprise credit investment and the promotion of energy saving and emission reduction of short-term goals, the green financial policy objectives are still mainly stay in the limitation of "two high and one capital" enterprises and promote energy saving and emission reduction. The goal of green finance is to limit credit investment in "two highs and one capital" enterprises and to promote energy saving and emission reduction in the short term. The competent financial authorities have not yet fully assumed the responsibility of disseminating and guiding the concept of green finance. In the field of international cooperation, the competent financial authorities have not seen any positive actions. Financial institutions lack understanding and learning channels for the latest trends in international green finance development, environmental risk assessment techniques and experience in environmental risk management.

Fourth, the progress of financial institutions to develop green finance strategy preparation is still relatively slow

Green finance has not been fully elevated to the strategic level of China's financial institutions, the strategic preparations have not yet been carried out in full. Some of the financial institutions that have entered the practical exploration phase of the development of green finance in fact, most of them are still stuck in some specific business level, and have not formulated a special green financial strategic objectives and development planning. China's financial institutions have not yet effectively carried out strategic preparations for organizational security, corporate culture (including credit culture), talent and policies. China's financial institutions still need to learn how to embed environmental factors into the business decision-making process, how to develop green financial products and services, how to conduct environmental risk assessment and management, and many other aspects.