Page 20 - Research on Financial Development Mechanism and Path of Forestry Carbon Sequestration in Developing Countries under Double Carbon Targets

Research on Financial Development Mechanism and Path of Forestry Carbon
Sequestration in Developing Countries under Double Carbon Targets

1.3 The “Double Carbon” Goals Put Forward Higher Demand
for Green Financial Development

During the 13th Five-Year Plan period, China initially formed a framework for the
development of green finance, which played an important role in environmental protec-
tion and improved the quality of China’s ecological environment. During the 13th Five-
Year Plan period, green finance developed vigorously and had a bright future. Import-
ant achievements such as the basic establishment of a national green financial services
policy and regulation system and international cooperation in green financial services
were achieved. During the “14th Five-Year Plan” period, it is required to promote the
all-round development of a green and low-carbon cycle. Based on the “double carbon”
target, environmental protection financial institutions are facing new challenges. The
strategic measures with carbon neutrality as the main target will promote the growth of
environmental protection financial institutions from both demand and supply. Focusing
on the demand side, reducing carbon emissions, reducing pollutant emissions and other
indicators will continue to transform the mode of economic growth forward; From the
supply side, the upgrading of green financial policies under the “double carbon” target
and the upgrading of products and services innovation of financial institutions such as
banks when the green investment dividend appears are helpful to vigorously promote
the development of green finance. Starting from both supply and demand, expand the
capacity of green financial market.

1.3.1 to comprehensively improve the green financial policy system, increase
incentives for green finance
After entering the “double carbon” era, the government needs to issue a series of
policies to support low-carbon projects. Compared with the old policies, these new
policies are more powerful and have wider coverage. The policies include gradually
promoting the expansion of the national carbon trading market, giving play to the role
of financial subsidies and tax incentives, and other financial incentives that can reduce
the financing costs of green projects; At the same time, it is necessary to continuously
increase the investment in green financial incentives, and to increase the intensity of
green financial incentives by means of subsidies and interest subsidies.
1.3.2 to develop more green low-carbon investment and financing products

According to the estimation in “Zero Carbon China Green Investment Blue Book”,

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