中国绿色预算发展前景研究（英）-18页_1mb

The Prospects of Green Budgeting in China: Analysis and Summary

As climate change intensifies, resources become scarcer, and economic losses from the pandemic loom large—creating severe fiscal pressures—governments worldwide are increasingly turning to green budgeting to support low-carbon transitions, green development, and a more resilient future. Green budgeting, as a fiscal management tool, aligns public funds with environmental priorities and leverages private investment, gaining traction, especially among advanced economies.

The Organisation for Economic Co-operation and Development (OECD) introduced a green budgeting framework in 2018, consisting of four building blocks: a strong strategic framework, tools for evidence generation and policy-making, enabling budgetary governance, and reporting for accountability. Countries like France, Italy, and Sweden have developed approaches to implement green budgeting, including green budget tagging and green performance tracking, respectively. China, however, has yet to establish a comprehensive institutional framework for green budgeting, though green elements are present in scattered fiscal policies, such as taxation, public expenditure, and green funds.

Green budgeting in China is still in its early stages, but it presents significant potential. The government’s commitment to reaching carbon peak and carbon neutrality goals has driven the reform of budgetary systems and performance-based budget management. While the methods of other countries, such as tagging used in Italy and performance tracking in Sweden, can be considered as possibilities that fit China’s national context, barriers remain. China needs to refine its approach—on defining “green,” clarifying the scope of application, improving methodologies, and enhancing the legislative foundation—through a pilot approach. Only then can China realize the full potential of green budgeting to enhance sustainable finance efficiency and meet its green investment demands.

In conclusion, green budgeting can help maximize sustainable development impact and drive inclusive, low-carbon economic growth. Policymakers in China should adopt a refined and tailored methodology framework, with a multi-step implementation plan for efficient outcomes.