Studies on How to Innovate the Green Finance System to Support the China (Shaanxi) Pilot Free Trade Zone's High-Quality Development

Abstract

According to the "14th Five-Year Plan," green finance has shown great potential to facilitate the overall transition toward a green and low-carbon economy during the period of the "dual carbon" goals. In addition to playing a critical role in driving economic development of the five provinces in the northwest of China, Shaanxi Province also falls within the core region of the "Belt and Road Initiative". Green finance development in Shaanxi plays an important role in transforming the economy of the western part of the nation. By analyzing literature and conducting on-site interviews, this paper examines what green finance development looks like in Shaanxi Pilot Free Trade Zone (PFTZ) and the challenges that communities face. A theoretical analysis explains the role of the PFTZ in promoting green finance development by coupling green finance development with the construction of the PFTZ. Further, specific strategies for further optimizing green finance development within the PFTZ are highlighted, accompanied by policy recommendations that are practical and feasible.