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Chinese State-led Green Finance in Africa: Development, Challenges and Way Forward

LIU Bing-yu   

  1. (School of International Law, China University of Political Science and Law, Beijing 100088,China)
  • Received:2020-07-16 Online:2020-10-19

Abstract: Africa is a central destination of China′s foreign investment under the “Belt and Road Initiative”. As an important funding sources for overseas investment by Chinese enterprises, the overseas green credit of financial institutions directly affects the sustainable development of Chinese investment in Africa,and the government plays an important role in promoting overseas green credit of Chinese financial institutions. China′s government and financial institutions have political, social and economic motivations to promote the green credit of financial institutions to Africa. The theory of government-led social responsibility reflects that the government has institutional advantages in the development and supervision of overseas green credit policies and implementation of China′s financial institutions.However, the development of overseas green credit promoted by the government in China′s financial institutions still lacks perfect internal environment and social security framework, effective supervision mechanism and sufficient credit transparency.Improving the framework and implementation of environmental and social security, strengthening the directors and senior managers′ green credit responsibility, and improving the transparency of green credit to Africa are conducive to better promoting the green credit of China′s financial institutions to Africa.

Key words: state-led corporate social responsibility, Chinese financial institutions, “Belt and Road Initiative”, Africa, overseas green finance, sustainable investment