Research on Practical Paths and Optimization Strategies for the Deep Integration of Green Finance and ESG in China

Abstract

Under the dual impetus of the global sustainable development Goals and China's "dual carbon" strategy, green finance has become the core force driving the green transformation of the economy. From a multi-dimensional perspective of policy, market and institutional innovation, this article systematically reviews the current development status of China's green finance, the integration mechanism of the ESG framework and the existing challenges, and proposes targeted optimization strategies. The study found that China has established a policy system of "three major functions" and "five pillars", and the market size of green credit, bonds, etc. has continued to expand, but there are still bottlenecks in the unification of ESG rating standards, the optimization of product structure, and regional coordinated development. ESG analysis empowers green finance through mechanisms such as optimizing investment and financing decisions and strengthening risk management, but it faces practical problems such as coordination of multiple subjects' goals and uneven quality of information disclosure. The study suggests building a systematic green finance ecosystem by strengthening top-level design, deepening differentiated exploration in regional pilot projects, promoting product and service innovation, establishing an ESG risk management system and enhancing capacity building.