Green Finance Beyond Policy: Fostering Financial Transition for Net-Zero Carbon Goals 2060 of China

Sajid Iqbal

Chapter 10 in Green Finance and Energy Transition in ASEAN, 2026, pp 297-328 from World Scientific Publishing Co. Pte. Ltd.

Abstract: China is actively limiting the growth of fossil fuel consumption and reducing coal energy subsidies to transform its energy systems and promote a sustainable oil supply chain. This research examines how green finance can be used to limit fossil fuel consumption and coal subsidies in order to help China achieve its 2060 carbon neutrality goal, in line with the objectives of COP28. The study develops a research framework concerning the Chinese provincial classification of high and low utilization of fossil fuels. Provinces using high fossil fuel are called the first scenario, and other provinces are called the second scenario. To develop the scenario. The study first applied the quantile clustering technique. Based on the findings in this paper, green finance limits the expansion of fossil fuels in high fossil-utilizing provinces while mobilizing sustainable supply chains in low fossil-utilizing provinces. The study findings uncovered that the financial transition of green finance and subsidized financing is needed significantly in China. Furthermore, the financial transition of green finance plays a significant role in fossil-fuel energy transition and net-zero carbon emission. Accordingly, the study also provided various policies for the policymakers.

Keywords: Green Finance; Energy Transition; ASEAN; Carbon Neutrality; Renewable Energy; Sustainable Finance; Climate Finance; Energy Policy; Green Bonds; Net-Zero; Transition Finance; Clean Energy Investment; Sustainable Development; Decarbonization; Climate Change Mitigation; ESG (Environmental; Social; and Governance); Low-Carbon Economy; Energy Markets; Financial Mechanisms for Sustainability; Energy Efficiency; Foreign Direct Investment (FDI) in Energy; Carbon Pricing; Policy and Regulation; Just Transition; Green Sukuk; Sustainable Infrastructure; Public-Private Partnerships (PPP); Institutional Investors in Clean Energy; Green Investment Strategies; Financing Renewable Energy; Southeast Asia Energy Policy; China Energy Investment; ASEAN Climate Goals; Energy Security in ASEAN; COP28 and Energy Transition; COP29; Economic Growth and Green Energy; Sustainable Power Systems; Carbon Markets in Asia; Green Hydrogen in ASEAN; Electrification and Smart Grids (search for similar items in EconPapers)
JEL-codes: G23 O13 Q01 Q40 Q50 Q56 (search for similar items in EconPapers)
Date: 2026
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