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Green bonds have increasingly been utilized around the world as a source of financing for renewable energy development, designed with compliance requirements and measurable economic returns to investors, while mitigating climate change. However, the efficacy of green bond arranged in the emerging economies for financing renewable energy assets and how the underlying risks are managed have remained to be explored. The paper aims to examine the evolving green financial system sponsored by both public and private institutions in managing such risks within China's emerging economy. A case study of green financing for a bundle of wind power assets led by a state-owned enterprise (SOE) reveals an alternative approach by structuring public–private collaboration while stipulating market-based financial incentives to institutional stakeholders under a political economy. This institutional consortium is composed of a state development bank, a commercial bank, credit rating agencies, institutional and private investors, regional power purchasers, and carbon trading entities. Financial stakeholders' risk in such emerging sustainable investment is moderated by these participating institutions and structured "upsides" from carbon trading aligned with the framework of green finance and standards for green bond development. The results reveal the potentials of scaling up the development of renewable energy by adequately managing and sharing key risks, while allocating substantial funding into renewable energy projects under such a green financial system that is to be complementary with a scalable post COVID-19 economic recovery. [ABSTRACT FROM AUTHOR]

China and India are not only the two most populous nations on Earth, they are also two of the most rapidly growing economies. Historically, economic and social development have been subsidized by cheap and abundant fossil-fuels. Climate change from fossil-fuel emissions has resulted in the need to reduce fossil-fuel emissions in order to avoid catastrophic warming. If climate goals are achieved, China and India will have been the first major economies to develop via renewable energy sources. In this article, we examine the factors of projected population growth, available fossil-fuel reserves, and renewable energy installations required to develop scenarios in which both China and India may increase per capita energy consumption while remaining on trach to meet ambitious climate goals. Here, we show that China and India will have to expand their renewable energy infrastructure at unprecedented rates in order to support both population growth and development goals. In the larger scope of the literature, we recommend community-based approaches to microgrid and cookstove development in both China and India. [ABSTRACT FROM AUTHOR]