The core of developing green finance is to balance environmental and economic benefits, ensuring financial support for the green economy to pursue sustainable development, Premier Li Keqiang said at the State Council executive meeting on June 14.

The meeting decided to set up pilot zones for green finance in Guangdong, Guizhou, Jiangxi and Zhejiang provinces as well as Xinjiang Uygur autonomous region.

The pilot zones, each with a different focus and unique model, are expected to explore innovative experiences that can be promoted to a wider range of regions across China.

“It is evident that China is earnestly fulfilling its commitment made in the Paris Agreement,” the Premier said.

As a developing country, tackling climate change is a tough process for China and requires extraordinary efforts. However, we will persistently progress along this path, he added.

More needs to be done to cut outdated capacity, upgrade industrial standards, and transform the financial system.

The Premier also asked local governments of the pilot zones to play a bigger role in promoting green finance development, increasing fiscal spending and providing projects that are paired with a market-oriented system.

Each pilot zone should follow a model that is innovative and complementary, featuring local competitiveness to draw more funds from the financial sector.

Abusive use of green finance is prone to risk exposure, the Premier said. The selected projects should not just be conducive to the environment but can create economic benefits.

The meeting decided to establish a risk prevention mechanism for the healthy development of green finance.

Premier Li also called for coordination among State Council departments to support the pilot zones.