China has just launched five “green finance” pilot zones to fund the country’s war on pollution. Each individual zone will focus on a different green financing subtopic based on the strengths and weaknesses of its economy.
Financing War on Pollution
China has just launched five “green finance” pilot zones, according to the central bank. The purpose of the zones will be to promote and fund the country’s 3 trillion yuan ($440 billion) war on pollution. Financial institutions in each zone will be authorized to offer incentives such as special funds and credit for environmentally friendly businesses and industries. The program will also hasten the development of green insurance and encourage banks to explore original mechanisms for financing, including water exercise permits and emissions trading.