International Experiences in Green Finance Development

25 Green Finance Ecosystem in New York 3.3 The Inner Demands for Green Under the global wave of green and low-carbon development, New York, as one of the world’s financial centers, has witnessed the spontaneous proliferation of green finance driven by the substantial demand from investors, financial institutions, and corporations (Table 4). Firstly, at the investor level, NewYork’s profound and extensive capital markets have attracted a multitude of participants, giving rise to various investment strategies. Simultaneously, the global green trend has engendered heightened environmental consciousness among an increasing number of individuals, catalyzing tangible changes in their conduct. For instance, shareholders are employing voting mechanisms to compel corporations to undertake specific actions. This aggregation effect is exerting pressure on large international corporations located in New York to undergo green transformations. Secondly, at the financial institution level, the New York Stock Exchange serves as a platform for companies seeking entry into the capital market. Typically, the companies listed on the New York Stock Exchange possess a genuine global presence and have already integrated elements of green and sustainable development. Furthermore, in order to ensure the effective dissemination of green information to relevant stakeholders, the Intercontinental Exchange has initiated the expansion of climate data services, committing itself to the formation of an extensive ecosystem. In this process, the US Securities and Exchange Commission, as a regulatory body, has played a pivotal role in establishing a fair competitive environment by mandating climate risk disclosures in financial reporting concerning climate risk, thereby addressing the information gap. Thirdly, at the corporation level, the amalgamation of risks and opportunities impels companies toward green transformation. Specifically, on the one hand, companies confront the risk of reputational damage resulting from public engagement and the impending imposition of carbon taxes. On the other hand, the current substantial inflow of capital into climate transition-related resources presents opportunities for the companies. Simultaneously, the Power Purchase Agreement market, which effectively channels funds into the renewable energy sector, exhibits robust performance, motivating more companies to establish objectives for renewable energy procurement and carbon reduction. Furthermore, companies are increasingly driven internally by growing customer demands and externally by regulatory and reporting frameworks. For instance, companies aspiring to become signatories of the Principles for Responsible Investment (PRI) must commit to the environmental, social, and governance (ESG) integration within their investment portfolios and provide an annual transparency report. This compels companies to integrate ESG principles into their business models.