Construction and Measurement of the Transition Finance Evaluation Indicator System for China’s Power Sector

Against the backdrop of China’s vigorous pursuit of its “carbon peaking and carbon neutrality” goals, transition finance has emerged as a critical instrument to tackle the financing constraints faced by high-carbon industries. However, the lack of a standardized evaluation system significantly impedes its effective implementation and sustainable development. This paper constructs an evaluation system for transition finance in China’s power sector, incorporating 15 indicators across three logical dimensions: external driving force, internal state, and management response. Using objective weighting and comprehensive ranking methods, the study assesses the transition finance performance of 64 Chinese power enterprises. Furthermore, a variance decomposition index is employed to analyze disparities and imbalances in transition finance development level. Results indicate: (1) the key to enhancing the level of power enterprises’ transition finance development lies in strengthening external policy support intensity and improving capital allocation efficiency; (2) China’s power sector exhibits slow growth in transition finance development, with pronounced internal divergence and uneven progress; and (3) the primary constraint on the development of transition finance in China’s power sector stems from the internal imbalances between two distinct types of enterprises: those heavily dependent on thermal power and those focused on renewable energy. This study proposes a quantifiable methodological framework to facilitate the development of transition finance in the power sector, while also constructing a reference evaluation paradigm to assist high-carbon industries in planning transition pathways and allocating transition capital.