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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]

With growing global concern for mainstreaming of environmental protection measures, the promotion of climate change and sustainable development policies, the international community, represented by international organizations, research institutions, and world‐wide businesses, has focused on green finance. Existing research on green finance in the context of environmental trends has been reviewed in terms of the products and determinants of green finance. This study aims to assess the impact of green finance on the decarbonization of economies in the context of a review of current and potential problems and prospects. Based on the examples of the People's Republic of China, the Russian Federation, and the United States of America, the study suggests that today green finance has not yet demonstrated a tangible effect in these countries. Based on the results of the study, it can be argued that in the three countries, the main tool of green finance in the field of decarbonization is green bonds; other types of green finance are used to a limited extent. The progress of the United States and China is not so obvious, but based on the overall involvement of relevant government agencies and businesses in the green bond market, it can be assumed that the results will be observed in the near future. [ABSTRACT FROM AUTHOR]