Research On The Green Financial Support To Circular Economy

The Circular Economy, as the model advocated by the scientific outlook on development, is the trend of the economic development. And the development of Circular Economy has gained national attention. On August29th,2008, the Chinese government issued the Law for Circular Economy Promotion of the People’s Republic of China, to define the Circular Economy as a major economic and social development strategy in the form of legislation. The Green Finance plays an irreplaceable role in the development of the Circular Economy, and the Green Finance has gradually became an important concept of the modern financial industry, as well. The environmental protection principle of the Green Finance is consistent with the sustainable development outlook of the Circular Economy. How to build up an efficient, market-oriented support system by the Green Finance for the Circular Economy? This is very significant in accelerating the establishment of resource-saving society and the promotion on the sustainable development. Thus, this paper is going to study on how to build a support system by the Green Finance to promote the development of the Circular Economy.First, the paper makes a summary about the researches on the Green Financial Support to Circular Economy. And then, the paper studies the Green Finance effect on the Circular Economy growth and the optimization of Circular economic structure, and makes the empirical analysis to the relationship between Green Finance and Circular Economy. The study shows that the Green Finance plays a positive role in promoting development of Circular Economy, and all these studies above lay the theoretical foundation for the following research. Then, the paper studies present situation in China, and find that our country lacks the Green Financial Support system and the operating mechanism to Circular Economy, besides, the Green Financial institution itself doesn’t have enough channels and products to support Circular Economy. To solve these problems, the paper studies the experiences in developed countries and suggests our country should improve the refinement of the green financial laws, formulate preferential tax policies for all sectors of the Circular Economy production and encourage the public to protect our environment. The paper also suggests we should make mechanism innovation in policy-based financial institutions and Commercial Financial Institutions to crack the problem of Green Financial Support for Circular Economy. Finally, the paper makes the specific suggestions on the green financial support innovation in commercial banks, development financing, insurance and the capital markets.