Green finance: a catalyst facilitating energy transition

In the face of escalating climate change, energy transition has become an urgent issue, which should be addressed through shifting towards sustainable and environmentally friendly energy sources. During the transition process, green finance plays a key role in achieving the goals. Green finance is financial activities taking into consideration environmental aspect, aiming to channel capital to eco-friendly projects and business (e.g., green energy and green technology) to promote environmental protection and sustainability, addressing climate and environment-related issues.

Energy transition requires substantial and stable investment to support the research and development, construction, and promotion of new energy sources. However, traditional finance often favors the traditional energy industry, which makes it difficult for green energy projects to receive adequate financial support. This shortfall is addressed by the emergence of green finance, which introduces specialized financial institutions and products to facilitate the financing for green energy projects and accelerate the energy transition. In addition, green finance contributes to improving energy efficiency and reducing emissions. One of the goals of energy transition is to reduce reliance on carbon-intensive energy sources and shift to green energy. By supporting energy-saving technologies and clean energy development through green finance, businesses and individuals are able to adopt energy-saving and emissions reduction solutions more easily, thereby reducing greenhouse gas emissions an