A Study On The Use Of Green Finance In Organic Food Industry

The idea of sustainable development was with the suddenness of the situation to sweep the world, Hence the green revolution rapidly spread on a global scale and penetrated widespread. Green finance (eco-finance) emerged. Hence organic food industry also rised rapidly. The credit has a strong financial intermediary function, a large number of idle funds accumulated in the community. However, there is limited support for the organic food industry. Organic food industry in China is faced with financing difficulties. Green finance is backward in development. How to achieve these two cross-cutting areas, it promote mutual progress and achieve a win-win situation were the problems in this paper to study.Understanding the conception of green finance and organic food industry was the first thing of this paper. Then analyzing the relationship between them and searching the meeting point for them in this paper were the second thing. The analysis revealed that the organic food industry was the investing areas of green finance and organic food industry was a good bridge of the transition from traditional finance to green finance. Green Finance can provide financial support and information services for organic industry. Then, the practice of domestic and foreign financial support for the organic food industry was analyzed. As a result foreign green finance was found supporting the organic food industry by promulgating perfect supporting policies, establishing strict legal system, implementing a proactive project financing and developing innovative financial tools while domestic green finance was found by providing policies appeal and developing financial products. By careful comparison of domestic and foreign financial support for green features of the organic food industry, it is found that there is a big gap between domestic and foreign green finance, mainly reflecting in the policy lags,legislation lags,investment and financial innovation lags. Then the reasons for foreign Green finance taking financial support for organic food industry and domestic green finance none supporting organic food industry were analyzed. As a result four reasons were found for the support of foreign green finance to organic food industry. Those were: first, a thick atmosphere; Second, strong legal backing; third, a solid sense of environmental responsibility; fourth, great green market value. The analysis also revealed the same time the reasons for missing support to domestic organic food industry. It was mainly due to some deviations of understanding: a weak sense of environmental responsibility; Second, there will be a deviation that it makes the organic agriculture equivalent to conventional agriculture; Third, it is said that environmental industries are non-profit. After pointing out the mistakes of these conclusions, three reasons were demonstrated for green finance to support for the organic food industry : first, a trading profit for sustained growth; second, broad market prospects; Third, the potential domestic consumer demand for sustainabled growth (mainly using utility theory. Engel's theory, and the income levels of consumer demand curve). Finally three countermatures were put forwarded from there aspects to support organic food industry. Those were thinking system and financial innovation.