International Experiences in Green Finance Development

24 International Experiences in Green Finance Development: Lessons for Hong Kong 3.2 State Level Efforts Converges with Federal New Policy In the context of the Biden administration’s endorsement of green finance development, the synergistic policy dynamics between the federal and state governmental tiers have conferred New York with advantageous conditions for the rapid elevation of its status in the green finance sector, both in terms of ideology and tangible initiatives. Firstly, with regard to the concept of sustainable development, as a state predominantly led by the Democratic Party, New York possesses a heightened social and political consciousness concerning climate and energy transition issues. This has propelled the government to take measures in support of green finance development. Specifically, in the context of a high-carbon economy, New York has adopted a carrot-and-stick approach to strike a balance between incentivizing and punitive measures. On one hand, the electoral success of climate-conscious Democratic parties in New York, coupled with alignment with federal and state-level government energy transition policies, has catalyzed the emergence of a suite of incentive-based policies. For instance, to drive the development of renewable energy, New York has used mechanisms such as tax incentives and loan guarantees to steer the growth of wind and photovoltaic power industries. Furthermore, New York has instituted regulations aimed at streamlining and expediting the permitting process for new renewable energy generation facilities, thereby achieving carbon reduction in its energy infrastructure. On the other hand, New York has implemented building ratings and commenced fining property owners for non-compliance with carbon footprint and energy efficiency requirements. This has spurred large-scale enterprises into action for green transformation. Secondly, as a focal point for climate change, New York has implemented a comprehensive array of policies and initiatives aimed at addressing this issue, promoting sustainable development, and reducing carbon emissions in the realm of climate action. These measures encompass support for renewable energy, energy efficiency projects, and green technological innovation. Additionally, New York hosts climate-related events such as the Climate Week organized by the Climate Group, which is an international non-profit organization. The event serves as a platform for expeditiously advancing climate action by convening stakeholders including businesses, governments, civil society organizations, and climate agencies for a series of official activities. In general, these actions pertaining to climate change mitigation and addressing energy challenges have cultivated a proactive stance among the people of New York toward green finance, viewing it as a strategic objective. However, it is essential to note that the situation in New York may not necessarily represent the entire United States, as some states heavily reliant on traditional energy sources or high-carbon industries may hold contrasting attitudes. Additionally, the shifts in political leadership can result in divergent policy directions.