Core Viewpoint - The article emphasizes the urgent need for China to develop a transition finance framework to support high-carbon industries in their shift to low-carbon operations, particularly in light of the upcoming 2035 Nationally Determined Contributions (NDC) targets under the Paris Agreement [1][4]. Group 1: Transition Finance Development - China is actively working on new 2035 NDC targets, which will require specific low-carbon transition plans from various regions, institutions, and enterprises [1]. - The Green Finance Committee of the China Financial Society is collaborating with the People's Bank of China to implement the first batch of transition finance standards and support the development of a second batch [1][9]. - Transition finance is seen as a necessary evolution from existing green finance, which is insufficient to fully support high-carbon industries in their transition [1][9]. Group 2: Global Climate Financing Context - Despite the U.S. withdrawal from the Paris Agreement and other international climate agreements, the actual impact on global sustainable finance is considered limited, as the majority of sustainable investments come from private sector funding rather than government sources [4][5]. - Global sustainable investment is approximately $3 trillion annually, with China's green investments accounting for about $1.2 trillion [4]. - The contribution of developed countries to climate financing for developing nations is less than $100 billion, with the U.S. accounting for less than 10% of this amount [4]. Group 3: International Cooperation and Standards - The international community, excluding the U.S., is encouraged to take a leadership role in sustainable finance by establishing compatible standards and enhancing disclosure practices [6]. - The establishment of a common classification system for sustainable finance, initiated by China and the EU, aims to improve the comparability and compatibility of international standards [6][7]. - The International Sustainability Standards Board (ISSB) standards are being promoted as a global benchmark, with around 40 countries, including China, adopting these standards [7]. Group 4: Transition Financial Products - Current transition finance products in China are primarily debt instruments, with a need to develop equity and insurance-related transition financial tools [10]. - There is a demand for equity-based transition financial tools to support capital expansion for transitioning enterprises, and initiatives are underway to establish "transition funds" for high-quality transition companies [10]. Group 5: Technological Innovations in Green Finance - The discussion around the tokenization of green assets using blockchain technology is gaining traction, with potential applications in tracking environmental and financial data of green assets [12]. - The use of blockchain can enhance the traceability and credibility of green assets, thereby mitigating risks associated with "greenwashing" and improving asset liquidity [12].

Group 1: China's Green Finance Development - China is actively formulating new NDC targets for 2035, which will require specific low-carbon transition plans from regions, institutions, and enterprises [1] - The Green Finance Committee aims to support the implementation of transition finance standards and the development of new financial products to facilitate the low-carbon transition [1][6] - Current definitions of green finance are insufficient to support high-carbon industries in their transition to low-carbon, necessitating the establishment of a transition finance framework [1][6] Group 2: Global Climate Financing Landscape - Despite the U.S. withdrawal from the Paris Agreement and other international frameworks, the actual impact on global sustainable finance is limited, with global sustainable investments reaching approximately $3 trillion annually, of which $1.2 trillion comes from China [2][3] - Government funding constitutes only about 10% of global sustainable investment, indicating that the majority is driven by social capital [2] - The contribution of developed countries to climate financing for developing nations is less than $100 billion, accounting for less than 2% of global sustainable investment needs [2] Group 3: International Cooperation and Standards - The international community, excluding the U.S., should enhance leadership in establishing standards and mobilizing social capital for sustainable investment [4] - The Sustainable Finance International Platform (IPSF) aims to create compatible sustainable finance standards, with a focus on enhancing comparability and consistency [4][5] - The ISSB standards have been adopted by around 40 countries, including China, which has introduced its own version of the ISSB standards to promote global adoption [5] Group 4: Transition Finance Products - Transition finance currently focuses on debt instruments, with a need to develop equity and insurance-related financial tools to support transition enterprises [6][7] - There is a demand for equity-based transition financial tools, such as transition funds, to help high-quality transition enterprises expand their capital [7] Group 5: Emerging Technologies in Green Finance - The discussion around tokenization of green assets is gaining traction, with RWA (Real World Assets) being a suitable application for blockchain technology in green finance [8] - Blockchain can enhance the tracking of financial and environmental data related to green assets, thereby mitigating "greenwashing" risks and improving asset liquidity [8]