China’s green finance development in 2025 continued to make significant progress across several areas. This advancement contrasts with trends in many Western markets, which have slowed or, in the case of the United States, reversed progress on green and sustainable finance. China’s advancements in green finance appear to be driven by three factors: 1. Policy trumps politics: unlike many Western countries, Chinese politics is less public, allowing policymakers to focus more on policy development. This enables the evaluation of environmental risks, such as climate change and biodiversity loss, based on scientific evidence rather than populism or current voter sentiment. As a result, policy recognises the need for green finance to address both short-term and long-term financial risks associated with climate change. […]