Green
development, as the expansion of forestry and the incorporation of urban
ecosystems, requires financial support to achieve the long-term development. Therefore,
the combination of finance and green development (i.e. forestry green finance)
is critical during this era where climate change and global warming are
directly threating the life of all species on the planet.
Sustainable
forestry is a key part of forestry green finance. Investors in forestry green finance
are looking at long-term return through sustainable development. As a carbon pool,
forestry provides carbon sequestration while timbers harvested from forests can
be used in different industries; thus, brings huge business opportunities.
Green
finance has been going on for a while in US. Many of the natural conservation
projects in the States were associated with green finance. In German, Australia
and New Zealand, investment companies and capital management companies are also
working with green finance organizations to promote environmental protection.
With the previous successful examples, China
could also adopt green finance to accompany the development of carbon market.
However, even with successful instances, China should still watch out for the
potential risks and should figure out its own way to deploy relevant financial
products and marketing tools.