The 2025 Qingdao Venture Capital Conference spotlighted green finance this week, with experts and policymakers outlining China’s roadmap to align financial systems with climate goals. A dedicated forum on “ESG Financial Reform and Green Finance Innovation” drew attention to integrating environmental, social, and governance (ESG) principles into investment strategies and product design.
Ambitious Climate Targets Drive Investment
Lai Xiaoming, chairman of the Shanghai Environment and Energy Exchange, emphasized China’s 2035 goal for non-fossil energy to exceed 30% of total consumption. He noted that new energy installation capacity is projected to reach 3.6 billion kilowatts—a sixfold increase from 2020 levels—calling it a “transformative opportunity” for investors.
Institutionalizing ESG Practices
Yin Hong of the Industrial and Commercial Bank of China highlighted three pillars for ESG adoption: embedding sustainability into corporate governance, revising investment policies, and developing classification systems for green financial products. “Differentiated incentives for low-carbon projects will accelerate market-driven climate action,” she said.
Fiscal Policy Meets Green Innovation
Lin Shan from the Ministry of Finance revealed that over 2.3 trillion yuan ($322.3 billion) has been allocated to green initiatives since 2021, with plans to expand fiscal support. He stressed the need to harmonize public funding with private capital to scale renewable energy and storage technologies.
The conference underscored a broader shift toward sustainability-driven financial ecosystems, positioning China as a testing ground for innovative climate finance models.
