China and Its Sustainable Investment Strategies

China’s sustainable development projects are being estimated to grow faster than the GDP of the country. Government’s announcement of directing all future investments towards sustainable development will also encourage companies to follow similar strategies. The renewable energy and environmental sector of China is growing stronger and even during the global economic downturn there was no shortage of capital and funding in these sectors.

Earlier this year the government announced an economic stimulus package of RMB 4 trillion (585 billion dollars). Out of this package, RMB 350 billion will be used for projects related to environmental sustainability like renewable energy and waste water treatment. Strategies are being followed by the government to direct sustainable finance towards the creation of sustainable energy, roads and infrastructure projects instead of financial input on sectors that can cause potential harm to the society and environment.

With the growth of green industries and investment opportunities, China seems all set to improve its environmental quality. Since the green market of China is going to be extremely competitive, only strong companies will be able to thrive. The critics of this reform are of view that sustainable development cannot be achieved with mere reduction in investment waste. According to them the best method of ensuring sustained development of the economy would be provision of educational facilities and encouragement of small business and communities.