China Green Finance Task Force Report: International Experience
The Green Finance Taskforce was convened in 2014 by the People’s Bank of China and the UNEP Inquiry. The Taskforce brought together leading Chinese experts on financial markets, policy and regulation from government, academia and from the private sector together with international experts and practitioners. One of the inputs to the deliberations of the Taskforce was a review of international experience from other, mainly Western countries.
The review looks at:
- The range of financial instruments and institutions available: green lending and green banks, green private equity and venture capital investment funds, green ETF and mutual funds, green bonds and green insurance.
- The different kinds of fiscal instruments that governments have used to encourage market-based green investment; including interest rate discounts, partial risk guarantees, feed-in tariffs, government procurement incentives, tax breaks, and direct public capitalisation of green banks.
- The range of non-fiscal measures that governments have taken including legal liability, environomental due dilligence requirements, including environmental risks in credit rating, attaching environmental criteria to stock market listings and creating green investor networks
[NB: This paper is one chapter of the broader report “Establishing China’s Green Financial System” developed by the China Green Finance Task Force, which was convened by the Research Bureau of the People’s Bank of China together with the UNEP Inquiry].