In May 2022, with support from Energy Foundation China, the Zhejiang Economic Information Center released this report studying how to develop and test financial products that will help decarbonize small and micro businesses.

The research establishes a quantitative evaluation tool for green finance for smaller businesses and examines enterprises’ carbon intensity performances through factors such as their carbon emissions, economic outputs, environmental impacts, and green governance mechanisms. The authors hope financial institutions can use such standardized tools to identify the carbon performance of enterprises and incorporate the tools into decision-making.

The research lays a foundation for the development and operation of green financial products for small and micro businesses, and can help provide a green finance example as Zhejiang—one of China’s manufacturing powerhouse—moves toward its carbon peaking and neutrality goals. The authors also hope it can inspire green finance work in other parts of the country.