Lanting Liu1,2,*, Grace R. Tobias1
1College of Business Administration, University of the Cordilleras, Baguio, Philippines.
2School of Economics and Management, Shandong Youth University of Political Science, Jinan, Shandong, China.
*Corresponding author: Lanting Liu
In response to the increasingly severe climate issues, governments around the world have set emission reduction targets, and the low-carbon transformation of enterprises has become a hot topic of global concern. As an emerging financial model, green finance plays a very important role and significance. This paper discusses the application of green finance in promoting the low-carbon transformation of enterprises from three aspects: green credit, green bonds, and green investment funds. The paper presents cases of state-owned banks promoting green credit for enterprises, enterprises using green bonds to support low-carbon transformation, and financial institutions issuing green investment funds. It analyzes their practical processes and effects and summarizes the practical experiences in order to provide guidance and reference for other enterprises and financial institutions. The conclusion is that green finance can effectively promote the low-carbon transformation of enterprises, but it needs to strengthen supervision and standardization, improve transparency and sustainability, and requires joint efforts from enterprises and financial institutions to form a positive interaction in order to achieve sustainable development goals.
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