Social Sciences in China (Chinese Edition)

No.4, 2013

The Inducing Mechanism of Development Finance in the Building of Carbon Finance System

(Abstract)

Du Li, Zhang Yun and Wang Fengkui

Carbon finance is still in its early stage in China, and faces a number of risks. In order to get out of the dilemma, it is crucial to draw on different forces, particularly the “inducing effect” of development finance that possesses policy-based financial properties in the development of carbon finance. This study uses institutional design and supply to define the borders of policy-based finance, promote the diversification and innovation of products, and improve the risk warning and prevention system, so that development finance can play its full roles of information spillover, risk filtration and credit enhancement in the building of carbon finance market, that carbon finance can achieve rapid and stable development, and that green economy can be realized.