International Experiences in Green Finance Development

21 Green Finance Ecosystem in New York In contrast to Singapore and the United Kingdom, the United States lacks a clearly defined top-down design for specific green finance action pathways, primarily due to the increasing polarizationof partisanpositions, the systemof political checks andbalances, and the substantial influence wielded by fossil fuel interest groups. The progress achieved by the United States in the field of green finance can be attributed, on the one hand, to the conducive environment fostered by US policies addressing climate change and energy security. On the other hand, it stems from the significant impetus generated by robust “bottom-up” market demand. 3.1 Climate and Energy Policy Propels the Development of Green Finance Despite the pronounced polarity and oscillation in the US green finance policy due to the polarization of attitudes between the Democratic and Republican parties and their alternating governance, the focus on climate and energy (Table 3) continues to propel the development of green finance policy in the United States. Firstly, the foundation of the US green finance system can be traced back to the enactment of the Superfund Law in 1980, which established the “Polluter Pays” principle, marking the early inception of the US green finance framework. Secondly, after the 1990s, the US federal government ushered the development of its green finance system into an entirely new phase, guided by market-based economic mechanisms. Notably, during this period, the Clean Air Act Amendments played a pivotal role in comprehensively elevating the green finance system. Furthermore, operating within the framework of the United Nations Framework Convention on Climate Change, the Clinton administration introduced the Climate Change Action Plan, urging voluntary participation from industrial, commercial, and energy supply sectors to achieve the goal of reducing greenhouse gas emissions to 1990 levels by the year 2000. Simultaneously, driven by considerations of energy security, the US Congress passed the Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007, advocating for the formulation of subsidy programs and the resolution of energy supply and demand issues, thereby reducing the US’s dependence on petroleum and improving air quality. Against the backdrop of the economic recession in 2009, the US Congress stimulated the development of clean energy by enacting the American Recovery and Reinvestment Act, using fiscal expenditure to bolster the growth of clean energy. Furthermore, in 2015, the US government sought to promote clean energy development through the implementation of stringent policy instruments, exemplified by the release of the Clean Power Plan, which imposed nationwide restrictions on carbon pollution from the largest sources in the United States for the first time. Lastly, the Biden administration has charted a course for the long-term advancement of green finance by enacting a cohesive series of policies, including the Infrastructure Investment and Jobs Act, the Long-Term Strategy of the United States: Pathways to Net-Zero Greenhouse Gas Emissions by 2050, and the Inflation Reduction Act, collectively paving the way for the sustainable growth of green finance.