Establishing China's Green Financial System: Progress Report 2017

Release time:2018-11-01

China’s work on green finance stretches back a decade. This was strengthened when in 2016, China unveiled its policy framework for the green financial system. On 31 August 2016, seven ministerial agencies including the People’s Bank of China (PBoC) and the Ministry of Finance jointly released the Guidelines for Establishing the Green Financial System (the “Guidelines”), setting out, for the first time, the official definition of green finance, incentives, disclosure requirements, development plan for green financial products, as well as risk mitigation. 

This document marked the official initiation of supply-side financial structural reforms aiming to promote green development. The Guidelines also included green finance into China’s policy and regulatory framework, putting an end to its previously fragmented development. Meanwhile, as the first country in the world with clearly stated government policy support to create an all-encompassing green financial system, China has also seen rapid development in green financing and green financial product innovation, spurred by policy incentives.

Since the release of the Guidelines, aside from continuous policy implementation at central and local levels, China has made major progress in areas including green financial products, institutions, standards and methods, and has been playing an increasingly important role in facilitating international cooperation in green finance. In the future, China’s green finance development process will not only determine the level of green development in China, but also exert considerable influence on the green transition of the world economy at large.

This report takes stock of and reviews China’s development of green finance over the past year in various dimensions including policies, products, and market infrastructure and offers recommendations and an outlook on future development.

Download the full report here. (Available in Chinese and English)