Bigger govt role needed in green finance

The government can play a more powerful role than capital market in encouraging financial investment flowing into sustainable development businesses, said Gao Xiqing, former president of China Investment Corporation, China's key sovereign wealth fund.

"The financial sector is overall cautious in investing in environmentally friendly industries," he said at the 2014 Eco forum Global Annual Conference Guiyang.

Many international public relations firms have been lobbying him to invest in environmental protection and non-fossil energy fuels projects since the launch of China's sovereign wealth fund, said Gao.

"We did a lot of research and figured out that one of the biggest challenges facing the alternative energy sector is its unpredictability, the last thing investment firms like," he said.

"Use of fossil fuels has brought an unbearable high cost to the society, so it's necessary to greatly raise the cost of using conventional energies," said Gao.

Meanwhile, the government should use a balanced policy system to allow all alternative energies to compete equally and let the market make the option as we will never know which new energy will last longer.