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The world is facing the challenges of climate change and energy structure adjustments. The role of digital finance, a new branch of business that combines digital technology and traditional financial products, in reducing global carbon emissions needs to be studied. This paper uses panel data on 280 cities in China from 2011 to 2019 to empirically examine the efficacy of digital finance for governing carbon emission reductions and the mechanism by which it does so. The results show that (1) digital finance can facilitate carbon emission reductions and help reduce carbon emission intensity within regions; (2) digital finance helps promote the rational allocation of resources and alleviates factor distortions by encouraging firms to rationally use their own factor endowments so as to reduce carbon emission intensity, which holds robustly after considering the endogenous issues such as possibly omitting variables and collinearity; and (3) differences in geographical location, the vitality of regional innovation and entrepreneurship, regional willingness to protect the environment, and environmental protection levels lead to heterogeneity in the effect of digital finance on carbon emission intensity. Therefore, it is necessary to vigorously develop digital finance as a long-term tool for carbon governance. [ABSTRACT FROM AUTHOR]

To achieve carbon peak targets, realize carbon neutrality vision, and tackle global climate change, China must improve the carbon emission performance at the city level. Based on the carbon emission performance of 191 prefecture-level cities in China from 1997 to 2017, this paper analyses the evolution characteristics of urban carbon emission performance from three aspects: the overall spatial and temporal evolution, the differences according to both region and city size, and the differences among clusters categorized by carbon emission performance at the city level. This paper also reveals the impact of the social and economic transition on China's carbon emission performance. The results show that: (1) The overall level of carbon emission performance of Chinese cities is low, and there is a downward trend during the study period. The differences in carbon emission performance among cities are convergent, but there is a wide gap between high and low values. (2) The carbon emission performance of cities in eastern coastal areas is higher than that in non-coastal areas cities. Large urban agglomerations and economically developed regions, such as provincial capitals, are the agglomeration areas of high urban carbon emission performance values. (3) The carbon emission performance level of cities with similar sizes will converge. At the same time, such changes will enhance the differences among carbon emission performances at the city level within the same region. (4) Cities that belong to high urban carbon emission performance clusters are mainly distributed in the eastern region. Such cities are classified into large cities, supercities, and megacities. Compared with low urban carbon emission performance clusters, cities in high urban carbon emission performance clusters show a higher proportion in the medium-high level and high level of carbon emission performance. Moreover, cities in high urban carbon emission performance clusters are more likely to improve theirurban carbon emission performance. (5) The economic agglomeration effect, industrial structure adjustment and carbon intensity reduction have a significant impact on improving urban carbon emission performance. Population agglomeration has an incremental effect, and the anticipated benefits of environmental regulation have yet to be fully realized. The impacts of different clusters and different regions are variable. Finally, this paper advances policy enlightenment according to its research findings. [ABSTRACT FROM AUTHOR]

China's newly announced carbon neutrality goal manifests its determination to advance green and low-carbon development. The country aims to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060. Consequently, guidelines and action plans have been actively deployed and issued. The carbon neutrality commitment (vision) and its detailed deployment (action) would contribute to climate change mitigation and corporate market value. Therefore, we categorize the carbon neutrality-related events and analyze their impacts on the stock market from July 2020 to March 2021. The main findings are as follows: (1) The action event have increased the carbon neutrality-related stocks by 0.04%, while that of the vision event is – 0.003%, indicating that investors' confidence increases when the carbon neutrality commitment is accompanied by specific and detailed guidelines. (2) The impact of carbon neutrality announcement becomes more positive and significant after related events occur repeatedly. (3) Carbon neutrality-related power industry and state-owned enterprises are potential beneficiaries of this decarbonization goal. Our study supplements the literature on climate policy and its economic value, potentially contributing to the next stage of global decarbonization. [ABSTRACT FROM AUTHOR]