green finance is an economic activity to support environmental improvement, cope with climate change and save and use resources efficiently, that is, it provides financial services for project investment and financing, project operation and risk management in the fields of environmental protection, energy conservation, clean energy, green transportation and green buildings. Green financial system refers to the institutional arrangement to support the economic transformation to green through financial instruments and related policies such as green credit, green bonds, green stock index and related products, green development fund, green insurance and carbon finance.

compared with traditional finance, green finance emphasizes the interests of the living environment of human society, and takes the degree of environmental protection and effective utilization of resources as one of the standards to measure the effectiveness of its activities, and guides all economic entities to pay attention to the natural ecological balance through their own activities. Green finance emphasizes the coordinated development of financial activities, environmental protection and ecological balance, and finally realizes the sustainable development of economy and society.