By the end of 2020, green loans and green bonds in China totalled 1.8 trillion US dollars and 125 billion US dollars respectively, ranking as the world’s largest and second largest. More than 40 carbon neutral bonds have been issued, with a total volume of over 10 billion US dollars. The 30/60 goal has set a higher bar for the financial sector.
To meet this goal, we need to overcome a host of challenges. First, on the society front, public awareness of emission reduction has to be raised. Second, on the market front, the carbon market has to play a greater role in price discovery. Only when carbon emission is priced in, can we achieve effective resources allocation.