CHINA’S EXPERIENCE IN GREEN AND TRANSITION FINANCE
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Abstract
One of the global problems of our time, which can lead to catastrophic consequences, is climate change caused by significant emissions of carbon dioxide into the atmosphere, environmental pollution. Environmental protection, transition to a low-carbon economy, achieving zero carbon emissions have become critical in modern conditions due to the escalation of the negative impact of climate change on a global scale. Above mentioned processes caused the necessity of the acceleration of green transformation at the state level, which requires appropriate sources of financing. China is a state with a high level of emissions and at the same time it is one of the leaders in the transition to a green economy. The aim of the article is to analyse the best practices in the field of green transformation of the economy and the construction of a green finance system in China and to find out possibilities for their implementation in Ukraine. The article analyzes China’s experience in implementing projects to increase energy efficiency and environmental protection at the city level in order to achieve a macroeconomic effect and proposes its use in Ukraine. Based on the conducted research the author has determined that the development of pilot projects for industrial cities, which have the highest emissions of carbon, sulfur dioxide and others into the environment, can be the first stage of the country’s “green” transformation. This will allow to get a positive effect at the macro level and then expand the scale of the green transformation, using the experience of pilot cities. The article highlights China’s comprehensive approach to creating conditions for the transition to a green economy, namely, a combination of measures implemented by the state at the macro level and at the city level, a strategic state-business partnership, the active participation of banks in promoting the green transition by determining priority areas of financing. The author emphasizes the important role of banks and other financial institutions in building a green financial system and promoting the green transition. It is determined that the created architecture of green financing can become the basis for financing green and transition initiatives in Ukraine, which will contribute to its sustainable development. A successful combination of strengthening regulatory requirements for business and creating a system of green and transitional financing, in particular expanding access to financial resources, and implementing innovative targeted financial instruments will provide impetus for an accelerated transition to a green economy.
How to Cite
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China, financial instruments, green lending, green finance, international credit, sustainable development, sustainable finance, transition finance
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