The forest coverage rate of Lishui is formidable, now coming in at 81.7 percent. [Photo by Lei Ning/Lishui Daily]

Lishui city – situated in East China's Zhejiang province – was included on a list of national pilot cities for climate investment and financing that was released on Aug 10, becoming the first of its kind in Zhejiang to do so.

The field refers to the investment and financing of activities which guide and mobilize capital to address climate change, in order to achieve low-carbon development. As such, climate investment and financing is seen as being an important part of green finance.

Lishui has for many years been adhering to the country's Two Mountains Theory, which states that lucid waters and lush mountains are invaluable assets.

By the end of 2021, Lishui's ecological and environmental status index had ranked first in the province for 18 consecutive years. The city's urban air quality ranked seventh among 168 key cities in the nation last year.

According to the latest data, the city's forest coverage rate has reached 81.7 percent, which has high carbon sequestration rates and offers great potential for carbon sink expansion.

Since Lishui launched the country's first pilot rural financial reform, the city has launched several green financial products, such as the Two Mountains loan and an ecological loan.

The climate investment and financing status is expected to add new vitality to the city's green and low-carbon development. Climate change-themed insurance, for example, will lower and eliminate risks in the production, distribution and sale of organic products.

The pilot work will also boost the construction of Lishui's digital ecological monitoring and supervision system, as well as a carbon account digital regulatory applications platform that will cover key carbon-related enterprises in its jurisdiction.