Research On The Trend Of Green Finance In China From The Perspective Of Carbon Trading

Since the reform and opening up,China's economy has experienced rapid growth,but at the same time,it has also caused damage to resources and the environment.It has gradually become a consensus to strengthen environmental protection and ensure the sustainable development of society.In order to achieve the balance between economic development and environmental protection,green finance emerged as the times require.In recent years,our government has launched a series of policies to develop green finance,and green finance business has developed rapidly.By the end of 2017,the scale of green financial financing of major joint-stock commercial banks in China has been greatly increased.Because of the favorable policies,China's green financial business has developed rapidly.But is this short-term behavior in financial markets or has a long-term trend?The author finds that the answers to the above questions are more general and most of them are qualitative analysis.This paper will start from the basic financing model of green finance,take carbon trading as the research perspective,try to study the development trend of green finance in China in the next ten years from the quantitative perspective,so as to provide ideas for financial institutions to develop green finance and regulators to strengthen green financial supervision.It is found that the development trend of green finance in China is on the rise in the next decade,and there is a large space for the development of green finance.We also find that carbon price has a more significant impact on the development trend of green finance than economic growth rate.We suggest that financial institutions develop green financial services in line with the trend of green finance,but the risk management departments and regulatory agencies should also control the scale of green financial financing to avoid financial excess.