A grassland wind farm in the Taobei district of Baicheng, Jilin province, in July. LI XIAOMING/FOR CHINA DAILY
China's rise as a global leader in renewable energy generation and clean technology manufacturing is largely due to its advancement in sustainable finance, which has been progressively aligned with international norms while tailored to national conditions.
China's national green finance ambition, regulation, and enabling environment have grown rapidly over the past 18 years, according to a recent report from the United Nations Environment Programme.
The government and financial regulators have developed a holistic and multilayered green finance system, the report stated. This system is based on the philosophy of ecological civilization and is characterized by a mix of historically steeped administrative approaches and innovative experimentation, focusing on both green and low-carbon growth and socioeconomic development.
"With directions and incentives to enable risk management and large-scale sustainable investment, China has risen to be a global leader in renewable energy generation and clean tech product manufacturing," the report said.
Zhu Shouqing, China Policy Advisor at the United Nations Environment Programme Finance Initiative, said the conclusion is drawn from a systematic review and analysis of more than 50 policy documents issued by China's central authorities and ministries.
Addressing the 2026 CSO Global Summit on Thursday, an event organized by independent consultancy SynTao-Sustainability Solutions, Zhu pointed out that the green finance system in China is steering the country's economy away from heavy reliance on natural resources towards more innovation and capital-driven growth.
The report also observes a pattern of gradual transition and harmonization in China's process to establish its holistic and multilayered green finance system.
Over the past two decades, China has progressively embedded sustainability considerations into its national development framework, establishing economy-wide sustainability goals and creating an enabling environment to promote green and low-carbon growth, the report continued.
It said these measures broadly seek to align with international frameworks such as the 2015 Paris Agreement, the 2022 Kunming-Montreal Global Biodiversity Framework, and the United Nations' Sustainable Development Goals.
Due to its developing country status as classified by the UN and its energy resource endowment rich in coal but deficient in oil and gas, China has pursued a gradual transition in the energy sector while incrementally aligning its green finance standards with international norms, the report stated.
The concept of sustainable finance, more commonly referred to as green finance in China, has undergone an evolution process, it stressed. Initially focused on environmental protection, its scope has broadened as China's priorities evolved, integrating more climate and environmental, social, and governance factors, reflecting a progression from Chinese policy-driven initiatives to more internationally integrated practices.
