1. Resource allocation function: Green finance can guide and incite financial resources to lean towards green innovation projects such as low-carbon projects, green transformation projects and carbon capture and storage through various policy tools and means, and promote the development and growth of green industries. For example, by providing preferential loans, guarantees and other measures, enterprises are encouraged to carry out green projects such as energy conservation, emission reduction and renewable energy.
2. Risk management function: Climate change and environmental issues have become the focus of global attention. Green finance can enhance the financial system's ability to manage climate change-related risks and ensure the safety and stability of financial assets through climate risk stress testing, environmental and climate risk analysis, and risk weight adjustment of green and brown assets.
3. Market pricing function: Green finance can reasonably price carbon emission rights by promoting the construction of the national carbon emission rights trading market and developing derivatives such as carbon futures. This will help to play the decisive role of the market in resource allocation, promote the effective allocation of carbon emission rights, and promote enterprises to take measures to reduce carbon emissions.
The Source of Green Finance
1. The development of green finance has a long history, and its concept can be traced back to the western countries in the 1970s. At that time, people began to realize the contradiction between environmental protection and economic development, and gradually realized that the financial industry could play an important role in solving environmental problems. In order to achieve sustainable development, some financial institutions began to try to incorporate environmental factors into their financial business.
2. The development of green finance has gone through many stages. In the early days, green finance mainly focused on investment and financing activities in the fields of environmental protection and climate change, such as providing loans for renewable energy projects. Green finance has gradually expanded to more fields, such as green bonds, green funds and green insurance. To provide more investment and financing channels and choices for low-carbon, environmental protection, sustainable and other fields.
3. With the global climate change and the increasingly serious environmental problems, green finance has attracted more and more attention from the international community. In order to cope with climate change and promote sustainable development, many countries have issued relevant policies and regulations to encourage and support the development of green finance. For example, Europe, the United States, China and other countries and regions have established carbon emissions trading markets.