A Research on the Development Status of Green Finance in China

China's green finance has become one of the important tools to promote sustainable economic development. This review first analyzes the environmental, social and governance (ESG) situation of chemical companies, which are high-energy-consuming and high-pollution companies that mainly use green financial instruments. Carbon emissions and pollutant emissions, safety of employees and surrounding residents, and legal and ethical issues were discussed to illustrate the chemical industries situation. Then, this paper focused on the application of three green finance tools, green financing, green bonds and green insurance in Chinese capital market. Finally, this paper introduces the green financial incentive policies launched by the Chinese government and where the policies still need to be improved. Through the review of the above aspects, this paper concludes that China's green financial development has made significant progress, but it still needs to keep improve green financial products and face the challenges of more applications in other industries.