Risks and Prevention Methods in Green Finance

With the increasingly severe global environmental issues, green finance, as an important tool for promoting sustainable development and environmental protection, has experienced rapid growth in recent years. However, while green finance brings significant opportunities, it is also accompanied by var...

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Main Author: Hong Zihui
Format: Article
Language:English
Published: EDP Sciences 2025-01-01
Series:SHS Web of Conferences
Online Access:https://www.shs-conferences.org/articles/shsconf/pdf/2025/09/shsconf_icdde2025_03018.pdf
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author Hong Zihui
author_facet Hong Zihui
author_sort Hong Zihui
collection DOAJ
description With the increasingly severe global environmental issues, green finance, as an important tool for promoting sustainable development and environmental protection, has experienced rapid growth in recent years. However, while green finance brings significant opportunities, it is also accompanied by various risks, including market risk, technological risk, policy risk, and credit risk. This article systematically reviews the definition, framework, and risk types of green finance, and through case studies of CATL and BlackRock, demonstrates the specific practices of different enterprises *in green finance risk management. CATL effectively addresses market and technological risks through data-driven risk assessment and forward-looking policy analysis, while BlackRock integrates ESG factors into its investment decision-making process, promotes the development of the green bond market, and enhances the transparency and credibility of green finance. The article also proposes recommendations for addressing green finance risks from both governmental and corporate perspectives, emphasizing the importance of policy refinement, international cooperation, and corporate risk management. Although green finance currently faces numerous challenges, with strengthened policy support, accelerated technological advancements, and deepened international cooperation, green finance is expected to achieve higher-quality development on a global scale. Future research should further explore the long-term impacts of green finance risks, develop more precise risk assessment models, and improve the market liquidity of green finance products, thereby enhancing the green finance market.
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spelling doaj-art-72d2b5bc0806452bbb82e8564e327c622025-08-20T03:29:39ZengEDP SciencesSHS Web of Conferences2261-24242025-01-012180301810.1051/shsconf/202521803018shsconf_icdde2025_03018Risks and Prevention Methods in Green FinanceHong Zihui0FOF Sciences, City University of MacauWith the increasingly severe global environmental issues, green finance, as an important tool for promoting sustainable development and environmental protection, has experienced rapid growth in recent years. However, while green finance brings significant opportunities, it is also accompanied by various risks, including market risk, technological risk, policy risk, and credit risk. This article systematically reviews the definition, framework, and risk types of green finance, and through case studies of CATL and BlackRock, demonstrates the specific practices of different enterprises *in green finance risk management. CATL effectively addresses market and technological risks through data-driven risk assessment and forward-looking policy analysis, while BlackRock integrates ESG factors into its investment decision-making process, promotes the development of the green bond market, and enhances the transparency and credibility of green finance. The article also proposes recommendations for addressing green finance risks from both governmental and corporate perspectives, emphasizing the importance of policy refinement, international cooperation, and corporate risk management. Although green finance currently faces numerous challenges, with strengthened policy support, accelerated technological advancements, and deepened international cooperation, green finance is expected to achieve higher-quality development on a global scale. Future research should further explore the long-term impacts of green finance risks, develop more precise risk assessment models, and improve the market liquidity of green finance products, thereby enhancing the green finance market.https://www.shs-conferences.org/articles/shsconf/pdf/2025/09/shsconf_icdde2025_03018.pdf
spellingShingle Hong Zihui
Risks and Prevention Methods in Green Finance
SHS Web of Conferences
title Risks and Prevention Methods in Green Finance
title_full Risks and Prevention Methods in Green Finance
title_fullStr Risks and Prevention Methods in Green Finance
title_full_unstemmed Risks and Prevention Methods in Green Finance
title_short Risks and Prevention Methods in Green Finance
title_sort risks and prevention methods in green finance
url https://www.shs-conferences.org/articles/shsconf/pdf/2025/09/shsconf_icdde2025_03018.pdf
work_keys_str_mv AT hongzihui risksandpreventionmethodsingreenfinance