(JIN DING / CHINA DAILY)

Sustained efforts are needed to develop green finance to help transform the country's industrial and energy structure as environmentally friendly methodologies will be powerful drivers for the nation's economic development in the coming years, according to industry insiders.

"More efforts will be extended to explore the building of a green finance evaluation system on environmental, social and governance, or ESG, as well as to strengthen green project investment and green finance services," said Fan Wenzhong, Party secretary and chairman of Beijing Financial Holdings Group.

China was the first country to push forward efforts to make it compulsory for all listed firms and bond-issuers to disclose the ESG (environmental, social and governance) risks associated with their operations

As China aims to achieve carbon neutrality by 2060, green finance has what it takes to be the part of the financial services sector that will see the most dramatic growth, Fan said.

In December, the Central Economic Work Conference listed carbon emissions reductions as one of China's major tasks this year as the country aims to have carbon dioxide emissions peak before 2030 and achieve carbon neutrality by 2060.

"Such efforts have created huge historical opportunities for the development of green finance and will further contribute to the overall transformation and upgrading of the national economy and society," Fan added.

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The remarks came after Beijing Financial Holdings Group signed a strategic cooperation agreement with Moody's Investors Service in China on Tuesday.

The two parties will deepen cooperation in areas such as the construction of an ESG risk profile system, socially responsible investment and the innovation of green financial products and services.

Shi Hao, managing director of Moody's Investors Service in China, said that the move will help further support the development of China's domestic market and its position in the global economy.

China was the first country to push forward efforts to make it compulsory for all listed firms and bond-issuers to disclose the ESG risks associated with their operations.

As the country strives to meet its green development goals, the nation is allocating more financial resources to push forward carbon neutrality. Earlier this year, the country launched its first batch of carbon-neutral bonds.

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"China has been leading the region's shift toward financing with green bonds... and has been at the forefront of using green bonds to finance sustainable development," said Rajiv Biswas, Asia-Pacific chief economist at IHS Markit.