Co-benefits of CO2 emission reduction from China’s green finance pilot policy between 2012-2020

At present nearly 150 countries and regions are ready to propose or have already proposed carbon neutral targets, and finance is a key issue in global climate governance. China has pledged to “strive to reach the peak before 2030 and strive to achieve carbon neutrality by 2060”, which requires up to 100 trillion yuan of financial support, urgently needs the financial system to support green investment and financing activities in a market-oriented way.The green finance reform and Innovation Demonstration Zone is an important practice of green finance in China and plays an important role in addressing climate change.In this paper, 8 green finance pilot cities in China and the other 269 prefecture-level cities between 2012-2020 are selected as the research objects, and the effect and mechanism of pollution reduction and carbon reduction policies in the pilot area are deeply studied, and the DID model and the mediation effect model be conducted empirical analysis .The results show that the China’s green finance pilot policy of the experimental area has a remarkable effect on reducing pollution and carbon emissions, and the effect is increasing year by year. From the study of the mechanism of the policy in the green finance pilot cities, it is found that the policy mainly exerts the effect of reducing pollution and carbon through optimizing the energy consumption structure and promoting the upgrading of industrial structure.Based on this,it should focus on the optimization of energy structure and the upgrading of industrial structure, increase green technology innovation, and improve policies according to local conditions to promote the further development of the pilot cities.In addition, it is necessary to give play to the demonstration role of the pilot zone policy, promote its advanced experience, and promote other cities across the country to jointly contribute to China’s “double carbon” goal