Our law firm contributed to China Spotlight, a publication edited by the Italy China Foundation Research Centre, with “Green Finance in China and the EU: two different paths”, written by Lisa Bianchini and Paola Bernardi.
The article examines how China and the EU direct capital towards sustainable investments:
- in China, public authorities set criteria that financial institutions use to identify projects eligible for green financing. These criteria and dedicated financial instruments aim to support the country’s environmental and industrial priorities.
- the EU combines rules defining sustainable economic activities with requirements for companies and financial institutions to disclose sustainability information, to improve quality and comparability. Additionally, from 2026, banks must identify, measure, manage and monitor how ESG risks may affect financial risks, including credit risk.
Our conclusion is that, despite these differences, a broader transformation is visible in both systems: sustainability is moving beyond the identification of what qualifies as “green” and is becoming increasingly relevant to capital allocation, risk assessment and, ultimately, companies’ strategic decisions.
The publication is available exclusively to Italy China Foundation members.
