The green finance business is rapidly expanding in China, as regulators are committed to achieving a greener economic transformation on top of the 2060 carbon neutrality goal. Policymaking has been top-down, with high-level directives guiding the overall development of the market. In 2016, the People’s Bank of China (PBOC), China Banking and Insurance Commission and several ministries issued the Guidelines for Establishing the Green Financial System, which have served as the major policy framework for green finance initiatives in the country. The multilayer characteristics of China’s green finance system is evident in the high-level guidelines. The system consists of green loans, green bonds, environmental, social and governance funds, green insurance, green leasing, green trusts and carbon trading. According to China’s definition, the green finance business focuses on six green industries, namely energy-saving and environmental protection, cleaner production, clean energy, eco-environment, green infrastructure upgrades and green services.
