Green finance is a financial means of environmental protection. It means that financial institutions pay attention to the protection of ecological environment and the Governance of environmental pollution in their business activities, Integrate environmental assessment into decision making, guide social and economic resources through loans and equity investments,promote industrial restructuring and development, thus protecting the ecological environment, achieving green growth and promoting the sustainable development of society.

International Development of Green Finance

Green finance is raised in the context of global warming, which is mainly composed of three parts: carbon emissions trading, carbon fund and the traditional business expansion of financial institutions.

Many developed countries support the development of energy conservation and emission reduction projects by establishing various carbon funds. Due to the operating procedures and projects resulting from the CDM project - certified emission reductions (CERs) that differ from existing international trade rules, developing country governments need to adopt economic measures against the country CDM projects in the implementation of a certain degree of control and intervention. Various countries have set up carbon funds to reduce the gap between the Kyoto Protocol target and the potential domestic emission reductions. China can learn from its experience and build a clean development mechanism fund to make its contribution to meeting the goals of climate change and energy conservation and emission reduction.

Financial institutions also guide the development of green industries by providing equity financing support, implementing green credit and launching related financial products such as the Environmental Index.

China's green finance needs strict enforcement

Based on China's current stage of development and the legal system, it is not easy to achieve carbon emissions reduction through carbon trading. What China urgently needs is to promote the implementation of the 2014 edition of the Environmental Protection Law. Based on cost-benefit analysis, improvement must first be punished. The first thing that green finance needs is to punish enterprises that discharge waste voluntarily by means of finance and other means. Enterprises that discharge pollutants should pay environmental protection fees to the society.

China's green finance needs innovation and development

On the basis of punishing evil, China should actively promote good and need to vigorously promote the development of green credit, green equity investment funds and green financial products.

China's financial system is dominated by commercial banks, It is the top priority to develop green industry through green credit. At the same time, China needs to set up a green development fund to make equity investments, actively develop green industries and effectively encourage emission reductions.

To sum up, if we can punish evil, let the economic loss of polluting the environment far outweigh the economic income. If we can promote good and make the economic benefits of environmental protection far outweigh the economic costs, then the goal of healthy China and beautiful China is not far away! On the basis of governing the country according to law, green finance can bring about ecological civilization.