China is working on introducing market tools to incentivize ecological protection, including launching green equity indexes, according to a guideline published on Sunday.

The guideline was jointly published by the General Office of the Communist Party of China (CPC) Central Committee along with the General Office of the State Council.

China also pledged to work on designing financing tools considering ecological resources, such as carbon emissions and the use of water.

CGTN Explains: Understanding China's national carbon emissions trading market

The country plans to encourage banking financial institutions to provide green credit and qualified non-financial enterprises and institutions to issue green bonds. It also calls for insurance institutions to develop innovative green insurance products.

Cartoon:China's path to carbon neutrality by 2060

China aims to reach peak carbon emissions by around 2030 and achieve the carbon-neutrality goal by 2060.