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Research on the Pathway of Green Financial System to Implement the Realization of China’s Carbon Neutrality Target

Author

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  • Gaoweijia Wang

    (School of Economic and Management, Anhui University of Science and Technology, Huainan 232000, China
    These authors contributed equally to this work.)

  • Shanshan Li

    (Institute of Energy, Hefei Comprehensive National Science Center, Hefei 230031, China
    These authors contributed equally to this work.)

  • Li Yang

    (School of Economic and Management, Anhui University of Science and Technology, Huainan 232000, China)

Abstract

To answer to global climate change, promote climate governance and map out a grand blueprint for sustainable development, carbon neutrality has become the target and vision of all countries. Green finance is a means to coordinate economic development and environmental governance. This paper mainly studies the trend of carbon emission reduction in China in the next 40 years under the influence of green finance development and how to develop and improve China’s green finance system to help China achieve the goal of “carbon neutrality by 2060”. The research process and conclusions are as follows: (1) Through correlation test and data analysis, it is concluded that the development of green finance is an important driving force to achieve carbon neutrality. (2) The grey prediction GM (1,1) model is used to forecast the data of carbon dioxide emissions, green credit balance, green bond issuance scale and green project investment in China from 2020 to 2060. The results show that they will all increase year by year in the next 40 years. (3) BP neural network model is used to further predict carbon dioxide emissions from 2020 to 2060. It is expected that China’s CO 2 emissions will show an “inverted V” trend in the next 40 years, and China is expected to achieve a carbon peak in 2032 and be carbon neutral in 2063. Based on the results of the research above, this paper provides a supported path of implementing the realization of the carbon-neutral target of China from the perspective of developing and improving green financial system, aiming to provide references for China to realize the vision of carbon neutrality, providing policy suggestions for relevant departments, and provide ideas for other countries to accelerate the realization of carbon neutrality.

Suggested Citation

  • Gaoweijia Wang & Shanshan Li & Li Yang, 2022. "Research on the Pathway of Green Financial System to Implement the Realization of China’s Carbon Neutrality Target," IJERPH, MDPI, vol. 19(4), pages 1-18, February.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:4:p:2451-:d:754133
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    2. Shangram Bahadur Shah & Jirakiattikul Sopin & Kua-Anan Techato & Bibek Kumar Mudbhari, 2023. "A Systematic Review on Nexus Between Green Finance and Climate Change: Evidence from China and India," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 599-613, July.
    3. Jing Deng & Yun Zhang & Xiaoyun Xing & Cheng Liu, 2022. "Can Carbon Neutrality Commitment Contribute to the Sustainable Development of China’s New Energy Companies?," Sustainability, MDPI, vol. 14(18), pages 1-20, September.
    4. Yeguan Yu, 2023. "The Impact of Financial System on Carbon Intensity: From the Perspective of Digitalization," Sustainability, MDPI, vol. 15(2), pages 1-22, January.
    5. Shanshan Li & Gaoweijia Wang & Li Yang & Jichao Geng & Junqi Zhu, 2022. "Analysis and Prediction of the Coupling and Coordinated Development of Green Finance–Environmental Protection in China," Sustainability, MDPI, vol. 14(15), pages 1-20, August.
    6. Zhen Liu & Peixuan Li & Fenghong Wang & Mohamed Osmani & Peter Demian, 2022. "Building Information Modeling (BIM) Driven Carbon Emission Reduction Research: A 14-Year Bibliometric Analysis," IJERPH, MDPI, vol. 19(19), pages 1-26, October.
    7. Decai Tang & Hui Zhong & Jingyi Zhang & Yongguang Dai & Valentina Boamah, 2022. "The Effect of Green Finance on the Ecological and Environmental Quality of the Yangtze River Economic Belt," IJERPH, MDPI, vol. 19(19), pages 1-17, September.
    8. Pei Xu & Penghao Ye & Atif Jahanger & Siwei Huang & Fan Zhao, 2023. "Can green credit policy reduce corporate carbon emission intensity: Evidence from China's listed firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2623-2638, September.

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