Environmental Finance Policy in China: Retrofitting A Market-based Mechanism for Green Growth
Dr. Li Wei
Beijing Normal University, China
Since the early 1980s, China has attempted to promote environmental finance by incorporating relevant policies into environmental management. Approximately 20 policies have been put into effect during the past three decades, by developing environmentally friendly financial activities that can be categorized as green credit, green security, and green insurance. The development of environmental finance policies may be interpreted as a four-phased interaction between an objective-led environmental governance system and an improved financial system.
Consequently, an environmental credit and risk management system has been established among banks where hundreds of billions of dollar are invested in green sectors especially in renewable energy; while the financing of pollution-intensive companies has been halted; and environmental pollution liability insurance has been widely used in the insurance market. In order to create a robust market-based environmental finance system for green growth in the new process of reform and transform in China, many efforts are required to upgrade financial behavior from passive policy implementation to active participation in practice.
Dr. Li Wei is professor at the School of Environment, Beijing Normal University (BNU). He is also the deputy head of the Center for Global Environmental Policy and the Center for Low Carbon and Energy Technology, BNU.
His Ph.D. in the field of Environmental Geography focusing on Policy Environmental Assessment at the Beijing Normal University, and did his post-doc on environmental risk assessment at the University of Wisconsin-Green Bay, USA. His research interests include strategic environmental assessment, ecological planning and biodiversity, environmental economics, climate change policy, and environmental analysis and modelling of energy system and policy.